Speaking at the International Monetary Fund’s 2019 Michel Camdessus Central Banking Lecture, Haruhiko Kuroda, Governor of the Bank of Japan, said Japan’s economy was finally no longer in deflation owing to the powerful monetary easing.
The USD/JPY pair hasn’t shown a reaction to Kuroda’s remarks so far and it was last trading at 107.85, adding 0.15% on the day. Below are some key takeaways from the speech, per Reuters.
“Powerful monetary easing has boosted demand through a decline in real interest rates but it is still taking time to overcome low inflation.”
“Uncertainties regarding the global economy have been heightening, and some nervousness has been seen in global financial markets.”
“BoJ needs to pay close attention to the effects heightening global economic uncertainties have on Japan’s economic activity and prices.”
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