Negative short-term JGB rates reflect easing – BOJ’s Kuroda

FXStreet (Mumbai) – Additional headlines from BOJ’s Governor Kuroda hit the wires last hours, as he continued to speak in Nagoya on Japan’s economy and monetary policy.

Key Quotes:

Rising cost of Dollar procurement not hurting Japan firms’ lending, investment plans for now

Negative yields seen in some Japanese Govt. Bonds are a reflection of effect of qqe, which aims to push down yields across curve

Sustaining market trust in JGB is important not just for fiscal policy but to prevent Japan firms from facing higher dollar-funding costs

In long term, it’s true monetary policy has certain effect on FX rates

Aware forex rates have big impact on Japan’s economy so keeping close eye on moves

Monetary policy targets price stability, not forex stability

G7, G20 also agree that each country isn’t allowed to intervene in FX market to intentionally guide currency rates below levels that reflect fundamentals

Additional headlines from BOJ’s Governor Kuroda hit the wires last hours, as he continued to speak in Nagoya on Japan’s economy and monetary policy.

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