Bank of Japan Governor Tries to Calm Markets

Bank of Japan Governor Haruhiko Kuroda on Friday stressed that financial markets will likely stabilize over time, reflecting improvements in Japan’s economy.

But Kuroda warned that uncertainty surrounding the world’s third-largest economy remains high, and that the central bank will carefully watch market developments.

“Japan’s economy is likely to resume a moderate recovery as overseas growth picks up moderately and domestic demand remains resilient due to the effect of monetary easing and various stimulus measures,” Kuroda said at a conference in Tokyo.

“We will make policy adjustments as needed, examining both upside and downside risks to the economy and prices,” he said.

The BOJ stunned markets in April by unleashing the world’s most intense burst of monetary stimulus, promising to inject $1.4 trillion into the economy in less than two years to meet its pledge of achieving 2 percent inflation in roughly two years. It has kept policy on hold since then, despite the recent market volatility.

via Reuters

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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