Bank of Japan governor Kuroda begins his press conference 29 July
- economy likely to expand moderately as a trend
- today's policy steps and govt fiscal stimulus to provide synergy effects on economy
- CPI likely to reach 2% during FY 2017
- Will take additional easing steps if necessary to achieve price target
Doesn't sound like he's in any rush to do so.
USDJPY lower at 103.35
- will continue QQE with neg rates as long as needed to meet price goal
- will examine BOJ policy regarding what is necessary in future to meet 2% price target
- govt's economic package is appropriate in helping to achieve BOJ's inflation target
- doesn't think QQE has reached its limits
- room for deeper negative rates
Room for it but will they do it ?
Traders less than convinced with USDJPY still 103.34
- BOJ holds about 1/3 of JGBs so 2/3 still in open market
- increase in ETF purchases, dollar funding provision most appropriate policy steps for now
Hardly ramping up the rate cut stakes.