Kuroda’s speech: BOJ will ease without hesitation if chance that economy may lose momentum

The Bank of Japan (BOJ) Governor Kuroda is on the wires now, via Reuters, making a scheduled speech on the monetary policy and economic outlook.

Key Quotes:

BOJ will ease without hesitation if chance that economy may lose momentum for achieving price goal heightens

Positive output gap, firms' price-, wage-setting behaviour are key to determining whether momentum for hitting price goal sustained.

Economy sustaining momentum for hitting BOJ's price goal.

BOJ must pay more attention than before to heightening risks, particularly important is development in output gap.

If oil prices continue to fall and clearly push down Japan’s inflation, that could affect inflation expectations.

Don't have any preconception on what policy decision will be made in October.

BOJ will scrutinise economy, prices using various data, analyses of BOJ regional branch managers, market developments.

Investors' risk aversion easing somewhat due to hopes for progress in US-China trade negotiations.

BOJ’s policy is based on YCC framework, which can respond to economic, price, financial developments flexibly and is highly sustainable.

BOJ can combine, enhance tools which are rate cuts, increase in asset buying and acceleration of base money.

BOJ will choose appropriate policy tool at the time, but any step will essentially aim at pushing down real interest rates, risk premia.

Short-, medium-term rate moves have relatively big impact on economy, prices.

Excessive fall in super-long yields could hurt consumer sentiment by lowering returns of pension, insurance funds.

How to heighten sustainability of BOJ's policy framework will be an important topic we will continue to scrutinise

It is important to carefully weigh the benefits, costs of monetary policy steps.

Our policy is stimulating economy but increased scrutiny is needed on cost of prolonged ultra-low rate environment.

Impact of overseas economic slowdown has yet to affect Japan’s domestic demand.

If overseas slowdown persists longer than expected, it could hurt companies' investment stance.

USD/JPY keeps its range around 107.60 region amid BOJ's comments and US-China trade optimism.