BOJ Kuroda: Economy has improved under QE with yield curve control

Author: Greg Michalowski | Category: Central Banks

Speaking in Tokyo

He adds:
  • BOJ will keep supporting corporate activity by maintaining accommodating monetary conditions
  • Still some distance to hitting price goal
  • Both external and domestic demand are strong drives of growth
  • It is clear QQE has improved economy significantly
  • BOJ will promote powerful monetary easing to achieve both economic improvement and price stability
  • Risks to growth overseas no longer skewed to the downside
  • Aware of concerns among some of market players that BOJs big JGB buying may dry up market liquidity
  • Strong economy and weak prices exist in Japan and other advanced economies
  • BOJs JGB buying has been conducted in smooth manner, risk of problem emerging in its buying will be small for the time being
  • Long-term rates are largely influenced by the amount of bond bought by central banks on stock basis
  • Yield curve in Japan has been formed smoothly in manner consistent with guideline for market operations in the past year
  • Workers and management place priority on stable employment over wage increases
  • Companies stance is likely to shift toward raising prices
  • Wage situation is changing as base pay rises
  • The CPI is likely to increase moderately
  • Overseas economies are biggest risk for Japan's economy
The USDJPY remains near the high for the day and also near the 100 hour MA at 112.498 (trades at 112.44).  Yesterday, the price fell below this level and did not stop until reaching the 200 hour MA at  111.97.  The price has been stepping higher and returns to where it all started one day ago.  Sellers are leaning against the resistance level.  The Kuroda comments are not having a big impact on the the prices.