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