BOJ's Kuroda: Will Continue Easing Until 2% Inflation Stable
- Bank of Japan Governor Kuroda Speaks in Tokyo on Japan Inflation
- Japan is Moving Steadily Toward 2% Inflation Target
- Bank of Japan will Continue Easing Until 2% Inflation Stable
- Will Adjust Policy Without Hesitation if Needed
- Japanese Yen Weakens Following BoJ Kuroda Comments
Earlier today Bank of Japan (BoJ) Governor Kuroda spoke in Tokyo on the current state of inflation and the Japanese economy. He says there is a high chance that consumer prices will meet BoJ’s inflation target, and is likely to reach the price target in late fiscal 2014 to the beginning of fiscal 2015. He says the BoJ will continue easing until 2 percent inflation is stable and will adjust policy without hesitation if needed.
In April of last year the BoJ launched an aggressive asset purchases program that resulted in a dramatic weakening of the Japanese Yen. Monetary easing from the Bank of Japan is one of Japanese Prime Minister Shinzo Abe’s “three arrows” in efforts to revive the Japanese economy and reach an inflation target of 2 percent. Last week the BoJ kept monetary policy unchanged.
The Japanese Yen weakened against the US Dollar following the comments made by BoJ Governor Kuroda. DailyFX Strategist, Ilya Spivak sees initial resistance at 102.84 – with a break above that targeting the March 7 high at 103.75.
USD/JPY 5min Chart - March 20, 2014
Chart Creating Using FXCM Marketscope 2.0
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