Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Wednesday that the BOJ must continue its support for economic activity by continuing the current monetary easing, as reported by Reuters.
Additional takeaways
“Unless the Fed hikes rates faster than its forward guidance shows, the dollar exchange rate may not be affected as much by US-Japan interest rate differentials.”
“Our monetary policy is geared towards achieving the inflation target of 2% in a stable and sustainable manner.”
“The current 2% inflation is simply caused by higher energy prices, will not be sustainable.”
“We must continue our monetary easing to support the economic recovery and make the labor market much tighter.”
“I’m pretty sure we can get to 2% inflation in the coming years.”
market reaction
USD/JPY continued to rally on these comments, last trading at a 20-year high at 133.48, up 0.7% daily.
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