BOJ Kuroda Says Japan Still on Track Despite Setbacks

Bank of Japan Gov. Haruhiko Kuroda stressed Friday that there is no need to change the central bank’s outlook for the Japanese economy after a sharp contraction of the country’s gross domestic product in April-June.

The GDP tumble in the first quarter of fiscal 2014 reflected a pullback in demand after a surge ahead of the consumption tax hike from 5 percent to 8 percent on April 1, Kuroda told reporters after attending a financial meeting in Jackson Hole, Wyoming, earlier in the day.

The Japanese economy “will likely start to recover” in the current July-September quarter, Kuroda said. “The underlying trend on consumption is solid,” he said, adding that corporate earnings are robust as the impact of the tax hike is waning.

via Japan-News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza