More from BOJ Kuroda:
- As Japan is a commodity importer, arising commodity prices pushes down the economy through a decrease in household real income and corporate profits
- monetary policy should be to provide accommodative financial conditions, support achievement of a full-fledged economic recovery
- Japan's economy seems to be more resilient against the rising commodity prices that it was in 2008
- there is still ample room for pent up demand to materialize as Covid subsides
- Japan's inflation is expected to rise in the short run, but such a rise consist primarily of cost -push inflation and therefore lacks sustainability
- even with a cost – push shock like the current one, BOJ has not faced the trade-off between prioritizing economic stability or price stability, unlike other central banks
- BOJ is to firmly support economic recovery
- BOJ will examine various risks, including Covid, and continue to conduct monetary policy appropriately under yield curve control
- until CPI reaches and stays above 2% in a stable manner, we will continue easing and we will remain committed to overshooting
- yield curve control (YCC) has worked quite well, and we will continue with it
- medium to long-term Japan inflation expectations do not show signs of rising
- at this stage I don't think it's likely that a wage – price spiral will develop in Japan
The USDJPY has moved to a new session high and trades just above the 129.00 level. The price broke above the ceiling seen over the last couple of days.
USDJPY rises above the ceiling over the last couple days
