Bank of Japan (BOJ) Governor Kuroda comments still crossing the wires

  • Rising cost of dollar procurement not hurting Japan firms' lending, investment plans for now
  • Negative yields seen in some JGBs are a reflection of effect of QQE, which aims to push down yields across curve
  • Sustaining market trust in JGBs is important not just for fiscal policy but to prevent Japan firms from facing higher dollar-funding costs
  • In long term, it's true monetary policy has certain effect on FX rates
  • Monetary policy targets price stability, not forex stability
  • Aware forex rates have big impact on Japan's economy so keeping close eye on moves
  • G7, G20 agree that each country has right to intervene in FX market if fx moves are out of line with fundamentals
  • G7, G20 also agree that each country isn't allowed to intervene in FX market to intentionally guide currency rates below levels that reflect fundamentals

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Earlier comments are here:

  • Bank of Japan (BOJ) Governor Kuroda: China, EMs slowing, weigh on Japan exports
  • BOJ's Kuroda is starting to convince he can revive inflation without extra monetary easing (scroll down)