Bank of Japan Governor Kuroda is speaking in the Japanese parliament

  • Raising rates now to create policy space for future could hamper achievement of BOJ's price target
  • Explaining BOJ's exit strategy now could create confusion in markets as inflation still distant from BOJ's target
  • BOJ must communicate its exit strategy but only when inflation approaches its price target

Headlines via Reuters

This …

  • Raising rates now to create policy space for future

is a hoot.

I been hearing it around the traps past months (and longer) … raise rates now so if there is a recession we can cut rates …. roughly translated this means:

  • raise rates, cause a recession, cut rates.

Thanks for that, pass. Kuroda not sipping the Kool-Aid.

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Kuroda is speaking on the BOJ Semiannual Report on Currency and Monetary Control to the Committee on Financial Affairs in the House of Councillors