BOJ’s Kuroda: Need to continue with large-scale easing

Anil Panchal FXStreet

In addition to previous comments concerning the Bank of Japan’s (BOJ) monetary policy outlook, the BOJ Governor Haruhiko Kuroda offered additional statements to better forecast the Asian central bank’s next move.

Key quotes

If govt were to ramp up fiscal spending, the fiscal, monetary policy mix will have a bigger positive effect on the economy than when fiscal or monetary steps are taken individually.

More issuance may be meaningful to drop in yields.

Need to continue with large-scale easing.

Japan's inflation far from target.

Don't see BOJ’s ETF, J-REIT buying as causing problems in markets.

Fx and stock markets are relatively stable, which is desirable, but that doesn't mean BOJ needs to change its policy in any way.

Now expect global economy to pick up around first half to middle of next year.

Not thinking of timing any further BOJ easing with govt's decision to ramp up fiscal spending.

FX implications

The market‘s reaction to the comments has been positive amid the broad risk-on sentiment fuelled by increasing hopes of the US-China trade deal. USD/JPY takes the bids to 108.82 by the press time of pre-European session on Tuesday.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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