Bank of Japan Governor Kuroda speaking in the Diet

  • Fed has been giving slightly more cautious comments
  • Expect that's a reflection of US prices, China slow down
  • BOJ policy does not have currency manipulation as its target
  • must carefully watch impact of fed policy on markets, global economy
  • will mull easing policy further if FX moves hurt economy, prices and threaten achievement of price goal
  • various steps available if BOJ needs to ease more but must balance benefits, costs of steps

Check out the bolded comment … MOAR easing mulling! A negative for the yen.


  • central banks don't link policy to fx moves
  • crucial to guide monetary policy with eye on economy, market moves including FX
  • if BOJ were to ease further, it must take into account impact of such move on market function, financial intermediation