USDJPY falling to 117.40
- lowering of yield curve as a whole helps bring down real interest rates, boosting investments and consumption
- lower bond yields are due to BOJ’s massive JGB buying and lower interest rates in other countries
- BOJ aiming to achieve desirable growth cycle in which price hikes entail increase in corp profits, jobs and wages
- meeting 2% inflation could be delayed into FY 2016/17
Q&A underway
- says he never said 2% inflation to be met by end of FY2015/16
- must achieve 2% inflation target regardless of commodity price fluctuations
Yen pairs bouncing a little after that earlier wobble