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25 Jan 2016
BoJ Kuroda provides no hints at further QQE
FXStreet (Bali) - Bloomberg run an interview with Bank of Japan Governor Haruhiko Kuroda at Davos, with the decision-maker providing no hints at further QQE.
Kuroda said: "At this stage, we don't think the current market situation has been affecting corporate behavior unduly. But, as I said, the market is the market, and markets could affect the real economy -- so we carefully watch."
Kuroda added: "At this stage, a virtuous cycle of income to spending by the corporate sector as well as the household sector is maintained -- fairly robust," Kuroda said. "We are not so much concerned about the real economy."
"If necessary to achieve the 2 percent inflation target, particularly if the underlying inflation trend is seriously affected, then we can expand or further strengthen QQE in many ways. There are many ways to further strengthen and expand QQE even more creatively", Kuroda also said.
Comments from BoJ Chief Haruhiko Kuroda are of key relevance during the coming days, as speculation has risen that the BoJ may be mulling additional easing measures in order to counter-attack risks of lost momentum on inflation (due to declining oil prices), with a strengthening Yen also a factor that may influence their decision, as Japan needs a cheap currency to keep competitiveness.
Kuroda said: "At this stage, we don't think the current market situation has been affecting corporate behavior unduly. But, as I said, the market is the market, and markets could affect the real economy -- so we carefully watch."
Kuroda added: "At this stage, a virtuous cycle of income to spending by the corporate sector as well as the household sector is maintained -- fairly robust," Kuroda said. "We are not so much concerned about the real economy."
"If necessary to achieve the 2 percent inflation target, particularly if the underlying inflation trend is seriously affected, then we can expand or further strengthen QQE in many ways. There are many ways to further strengthen and expand QQE even more creatively", Kuroda also said.
Comments from BoJ Chief Haruhiko Kuroda are of key relevance during the coming days, as speculation has risen that the BoJ may be mulling additional easing measures in order to counter-attack risks of lost momentum on inflation (due to declining oil prices), with a strengthening Yen also a factor that may influence their decision, as Japan needs a cheap currency to keep competitiveness.