Earlier post is here:
BOJ Gov Kuroda says conditions warrant keeping monetary policy loose
Kuroda still going:
- BOJ’s market operation yesterday reflected its view recent rise in JGB yields were driven by factors unrelated to Japan's economy, such as rising overseas interest rates
- we don't intended to conduct unlimited bond buy offers too frequently, will do this as needed
- our current monetary framework seeks to balance need to support economy while mitigating negative impact on banks, JGB market functions
- forex moves reflect various factors, not driven just by interest rate differentials between each country
- weak yen works to push up import prices, but such impact on domestic inflation not that big now
- our baseline forecast is for Japan's economy, prices to gradually pick up as rising real household income underpin consumption
- one notable source of concern is escalating tension regarding Ukraine which could hurt global, Japanese economies if it drives up oil, commodity costs
- BOJ must debate exit strategy when inflation approaches 2%, doing so before that would risk mislead markets
- what the Federal Reserve is doing now would offer clues for when BOJ debates specifics of exit strategy
- theoretically, an exit from easy policy would require debate on when and at what pace boj will tweak size of its balance sheet, level of rate targets
(inflation )
