Kuroda: Current pace of purchases to continue for some time

Author: Adam Button | Category: Central Banks

Unscheduled comments from the BOJ

  • Doesn't see any constraints to BOJ policy
  • BOJ has 40% of JGBs, that means 60% are in the market
  • FX rate can affect inflation in the short term
  • We see a gradually rising inflation rate
  • When the yen rises due to global geopolitical risks, it complicates policy
  • Our inflation forecast is based on continued improvement in jobs and closing of the output gap
  • We're confident we can meet our inflation target in mid-2018 but that assumes stable yen
  • We will stick to yield-curve control, that means JGB purchases could rise or fall depending on market conditions
  • Real economy is better than we anticipated a few month ago but inflation still sluggish

The comments are from an unterview on Bloomberg TV that's on now.

The initial comments have sent USD/JPY back near the highs of the day.

Key line:

"We stick to yield curve control. Under yield-curve control, purchases may decline or increase but we think the current pace of purchases and monetary base increase will continue for some time."