BOJ’s Kuroda: Cautiously optimistic about the economic recovery in near future
As he continues to speak in an online seminar on Friday, the Bank of Japan (BOJ) Governor Haruhiko Kuroda said that they can be cautiously optimistic about the economic recovery in the near future.
Further comments
“Stock market moves reflect prospects of economic recovery from 2nd half of the year, which is 'not so unlikely'.”
“Expanded BOJ balance sheet would not be normalized until a 2% price target is achieved.”
“Once the impact of covid-19 on economy subsides and the economy starts to recover, BOJ’s extraordinary measures may be gradually curtailed.”
“BOJ’s inflation target is unlikely to be met in the short run.”
“BOJ, as a purchaser of RTFs, has no direct influence on corporate governance.”
“Division of labor in combating pandemic between governments, which have spending power, and central banks, which do not, is quite clear.”
“BOJ not taking credit risks but providing ample liquidity to markets, taking steps to provide liquidity to financial institutions.”
USD/JPY frozen around 107.15
The Japanese yen remains unresponsive to Kuroda’s comments as well as to the Tokyo CPI index, as holiday-thinned markets leave the investors with little to rejoice.
Meanwhile, looming coronavirus risks globally and broad US dollar strength continue to keep USD/JPY torn apart, as it now trades flat around 107.15.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
