Kuroda: Current Pace of Purchases to Continue for Some Time

Live on Bloomberg TV

Bank of Japan (BoJ) Governor Kuroda said “I think the current pace of purchases and monetary base increase would continue for some time”

* FX rate can affect inflation in short-term, but we think that inflation will go up reflecting the better output gap
* If FX appreciates, timing of 2% could be slightly delayed, if it depreciates, timing could be earlier, but basic trend is toward reaching 2% target
* The BOJ has about 40% of JGBs outstanding – so that means that 60% still in the market
* Don’t see any constraint for our policy to stimulate economy in coming years
* Inflation forecast based on assumption of stable FX
* Japan’s economy growing well above potential growth rate

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell