BOJ Governor Kuroda speaking in parliament –

  • Japan’s exports lack momentum
  • output shift overseas to slow on strong yen correction
  • Sales tax impact has been somewhat prolonged
  • Weakening yen is a plus if it reflects economic fundamentals
  • Will continue to closely monitor FX moves
  • Will add stimulus if downside risks materialize
  • Differing monetary policy directions influence FX market

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Nothing new from the good Mr. K this morning

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More:

  • Weak yen not overall minus for Japan’s economy so far
  • Sustainable fiscal situation is important
  • Sees economy on path to achieve 2% inflation target