BoJ Kuroda Has Confidence in Outlook

Bank of Japan Governor Haruhiko Kuroda said on Monday that economic growth is gathering momentum and increasing the chances of inflation hitting his 2 percent target, reinforcing market expectations that no additional stimulus is forthcoming.Kuroda said the central bank was closely watching the economic effects of prolonged ultra-easy policy, particularly the damage it could inflict on financial institutions’ margins.“The current economic expansion doesn’t rely on specific factors and is supported by various elements. We therefore see the expansion as highly sustainable,” Kuroda said in a speech to business leaders in Nagoya, central Japan.“The BOJ is mindful of the risk that its low-interest rate policy, if prolonged, could weigh on financial institutions’ profits,” he added, noting that reduced profits could discourage financial institutions from boosting lending.

Source: BOJ’s Kuroda says has confidence in strengthening economy, price outlook – 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 SKY News. 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