Further comments by Kuroda
- Adjusted forward guidance shows BOJ's easing stance
- BOJ has continued with very powerful easing persistently
- To conduct policy with extra easing in mind
- BOJ has various policy options when it comes to further easing
If there is any comparison to the BOJ trying to talk up their willingness to ease and their ability to add more stimulus, you can relate it to the story of the boy who cried wolf.
Traditionally, easing talk equates to a weaker currency but when you are out of options, it has a bit of a reverse effect - like what we're seeing with the BOJ.
As such, when the wolf really comes (BOJ does introduce more easing), expect there to be no help (markets will bid up the yen because this additional "powerful" easing is a bluff).
