Remarks released in a statement from BOJ Deputy Governor
He added:
- Easing and structural reforms are both essential
- Easing/structural reforms, complementary to each other
- Sustained inflation seen for 1st time since late 90s
- Must better explain the year for negative rates to the public
- Government growth strategy started to show tangible results
- Private sector needs to do more to boost competitiveness
- Need to redouble efforts to raise growth rate
- It will take a while before effects of governments grow strategy become visible
- will economy improved due to accommodative situation
- Explaining more persuasively that monetary policy steps are needed to achieve sustainable economic growth seems to be a challenge that BOJ and ECB have
- Must clearly explain effects of monetary policy should be assessed in terms of macroeconomic effects such as benefits from a rise in employment/wages
- Negative rates have not undermined financial intermediation
- Strengthening Japan's growth potential is not something that can be achieved through the government's growth strategy alone
- Must rely on the private sector to strengthen competitiveness
- Monetary easing/ structural reforms are essential to overcome deflation and to achieve sustainable growth.
The USDJPY has rebounded slightly in the last hour of trading after a steady decline that has seen the price move down from 110.23 to a low of 109.63. That move took the price below trend line support (currently at 109.84) and the 100 hour MA at 109.726.
