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As he continues to speak in an online seminar on Friday, the Bank of Japan (BOJ) Governor Haruhiko Kuroda said that they can be cautiously optimistic about the economic recovery in the near future.

Further comments

“Stock market moves reflect prospects of economic recovery from 2nd half of the year, which is ‘not so unlikely’.”

“Expanded BOJ balance sheet would not be normalised until 2% price target is achieved.”

“Once impact of covid-19 on economy subsides and economy starts to recover, BOJ’s extraordinary measures may be gradually curtailed.”

“BOJ’s inflation target is unlikely to be met in short run.”

“BOJ, as a purchaser of RTFs, has no direct influence on corporate governance.”

“Division of labour in combating pandemic between governments, which have spending power, and central banks, which do not, is quite clear.”

 “BOJ not taking credit risks but providing ample liquidity to markets, taking steps to provide liquidity to financial institutions.”