Bank of Japan governor Haruhiko Kuroda comments after BOJ monetary policy meeting 19 June 2015

  • Virtuous circle working in Japan's economy (These lot crack me up)
  • Long-term inflation expectations gradually rising
  • Japan's prices to rise toward 2.0% as oil price effect fades
  • Expects CPI to rise to 2.0% FY2016
  • BOJ's easing having intended effects
  • Will continue easing until 2% inflation is stable
  • Will check risks and adjust policy as needed

All pretty standard fare from the BOJ's head honcho

Speaking about last weeks FX bomb comment he says;

  • Commented on real effective FX rate
  • Didn't comment on level' or outlook for nominal FX rate
  • Desirable for FX to reflect economic fundamentals
  • Real effective rate is a complicated concept
  • Can't predict FX rate outlook from real effective rate
  • Mon pol not targeting currency rate or level
  • Difference in mon pol has effect on FX rate or level
  • FX is influenced by various factors

BOJ's Nakaso up now too

  • Japan's economy has continued to recover moderately
  • Price trend is steadily improving
  • Inflation likely to reach target H1 FY2016

The rest is just a repeat of Kuroda

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