FXStreet (Bali) – BoJ’s Governor Kuorda is crossing the wires, via Reuters, noting that the commitment to achieving the 2 percent inflation target will never be compromised, adding that he is confident BOJ can achieve its inflation target with “unwavering determination”.
Kuroda comments
Kuroda: central banks can overcome the zero lower bound, as long as the policy maker commits decisively to fulfilling its mandate with well-designed unconventional policy measures
Kuroda: it has become a common understanding among central banks that unconventional monetary policy, despite some lingering skepticism from academic front, has proven to be effective
Kuroda: inflation is widely perceived to be ultimately a monetary phenomenon, so creation of a massive quantity of money would be a strong signal of a central bank’s commitment to fighting deflation
Kuroda: monetising govt debt is widely understood to run the risk of eroding the credibility of the central bank and thereby potentially increasing risk premiums rather than reducing them
Kuroda: central bank’s strong commitment to policy objectives, clear and consistent communication, and decisive action to fulfil the commitment would collectively be powerful enough to have significant impact on inflation
(Market News Provided by FXstreet)