Haruhiko Kuroda, the Governor of Bank of Japan has started conference after monetary policy meeting:
- Japan’s economy has continued moderate recovery trend
- Expects price trend will steadily rise
- Expects CPI to hit 2% during FY2017
- Will add stimulus if needed
- Still see unstable moves in global financial markets
- BoJ bond purchases have been smooth so far
- No doubt that purchases affect bond market
- Decision on Brexit is up to voters in UK
- BoJ is in close contact with central banks including BoE
- Will carefully monitor impact of Brexit vote
USDJPY falls further much below 104,00.
- Need some time for negative rater to impact economy
- Effects of negative rates will be clearer
- Aware that negative rates could weigh on banks
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