The remarks by Kuroda continue to show that the BOJ remains trapped
- Vital for output gap to remain in positive territory
- But important to look at households', firms' inflation expectations as well
The fact he's not wanting to commit to if and when the BOJ will introduce more easing measures goes to show what limited options they have in doing so.
This is all coming across as the BOJ feeling rather trapped/cornered into their policy decisions despite other central banks looking to ease further in the coming months. I reckon they are probably hoping the Fed will communicate a "one and done" rate cut tomorrow but that is a rather big ask considering how the Fed always punts.
