Kuroda Not Concerned By Sharp Yen Depreciation

Bank of Japan Governor Haruhiko Kuroda offered an upbeat view of the economy but sought to douse market talk the central bank may soon consider raising interest rates, vowing instead to keep policy loose to achieve the BOJ’s 2 percent inflation goal.

Kuroda also said he did not see recent yen falls as a problem for Japan’s economy, saying that a weak currency helps accelerate inflation by boosting import costs and in so doing raise inflation expectations – a crucial element in the BOJ’s plan to beat economic stagnation.

“We are still distant from our 2 percent inflation target. It’s therefore appropriate to continue with powerful monetary easing,” Kuroda told a news conference on Tuesday.

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam