No additional stimulus from BOJ for now

Haruhiko Kuroda said the unprecedented stimulus announced by the Bank of Japan at his first meeting as governor last week is enough to achieve a 2 percent inflation goal.

The central bank has taken all “necessary” and “possible” measures, Kuroda told reporters in Tokyo yesterday. While officials will change policy as needed, he doesn’t expect adjustments each month, he said. The BOJ chief reiterated a pledge to do what’s needed to meet the target in two years.

Kuroda may be trying to head off criticism at a Group of 20 meeting in Washington next week by signaling limits to easing that escalated yen declines against the dollar to about 18 percent since mid-November. While Australian Treasurer Wayne Swan yesterday supported Japan’s policies, nations from China to South Korea are concerned by currency weakness and the risk of capital spillovers.

Kuroda’s “got work to do to avoid overt criticism,” said Kit Juckes, a global strategist at Societe Generale SA in London. “He’ll want to smooth the way with the G-20.”

The yen rose 0.1 percent to 99.71 per dollar at 9:03 a.m. in Tokyo, after yesterday touching 99.88, the weakest level since April 2009. Kuroda pledged last week to double the monetary base in two years after becoming BOJ governor in March.

He said yesterday that the BOJ’s campaign to fuel prices and growth isn’t targeting the yen and monetary policy won’t be altered because of currency moves.

Bloomberg

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