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20 Apr 2015
US dollar won’t continue to appreciate as it has appreciated in 2014 – BOJ Kuroda
FXStreet (Mumbai) - Speaking to a business group in Minnesota, Bank of Japan (BoJ) Governor Haruhiko Kuroda said the program of expansionary monetary policy the BoJ launched in 2013 and expanded in October was producing the desired effect to ward off deflation.
Key Quotes:
"Market expectations of interest rates in the coming years are so low, while we expect, as I said, we can achieve the 2 percent inflation target in fiscal 2015 or early fiscal 2016,"
"That means that interest rates should gradually go up so ... the Japanese markets could be surprised.”
"If underlying price dynamics (are) not what we are expecting than we do not hesitate to adjust or make additional monetary easing, but that is if necessary," Kuroda said. "At this stage we don't think it is necessary."
"Our focus towards an inflation rate approaching 2 percent does not depend on any depreciation in the yen."
On the greenback, Kuroda said, "Personally, I don't think the current dollar will continue to appreciate as it has appreciated in the last year."
Key Quotes:
"Market expectations of interest rates in the coming years are so low, while we expect, as I said, we can achieve the 2 percent inflation target in fiscal 2015 or early fiscal 2016,"
"That means that interest rates should gradually go up so ... the Japanese markets could be surprised.”
"If underlying price dynamics (are) not what we are expecting than we do not hesitate to adjust or make additional monetary easing, but that is if necessary," Kuroda said. "At this stage we don't think it is necessary."
"Our focus towards an inflation rate approaching 2 percent does not depend on any depreciation in the yen."
On the greenback, Kuroda said, "Personally, I don't think the current dollar will continue to appreciate as it has appreciated in the last year."