Bank of Japan governor Kuroda speaks in parliament - 8 February 2018
- Will continue easing to achieve price stability
- ETF purchases have played a big role in lowering risk premium
- Debt purchases amount will change depending on market conditions
- BOJ is still a distance away from 2% price target
- Too early to talk about specifics of exit strategy
- Economy needs tenacious monetary easing
- Negative rates are applied to about JPY 20T of commercial banks' reserves
The same old rhetoric from Kuroda, seems like the BOJ is trying to go for quantity over quality in terms of approach to pin down the Japanese yen. They don't have much else to say, but they've been on and on almost every day for the last two weeks just repeating the same thing about continued monetary easing.
It'll only be a matter of time before the market becomes desensitised by their words (if they are not already that is), but then it's the BOJ. They are capable of pulling off surprises from time to time.
USD/JPY now at session highs of 109.78, as risk sentiment in Asia improves and the dollar is gaining some ground on the day as well.
