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.