BOJ’s Kuroda: Japanese economy showing signs of a turnaround

The Bank of Japan (BOJ) Governor Haruhiko Kuroda is back on the wires now, via Reuters, noting that Japan’s economy remains in a severe state but showing signs of picking up.

Key quotes

BOJ will continue to strive toward supporting corporate finance, maintaining market stability.

Ready to take additional easing steps without hesitation as needed.

Fiscal, monetary policy mix is being effectively achieved as govt, BOJ each fulfil their roles.

BOJ is aiming to achieve 2% average inflation using pledge to keep increasing monetary base until inflation stably above that level.

Japan’s economy likely to improve as a trend as impact of pandemic subsides.

Risks to Japan’s economic, price outlook tilted toward downside, uncertainty very high.

Must watch whether companies could become more hesitant on spending due to economic shock from pandemic that may weigh on growth expectations.

Don’t expect Japan’s financial system to face severe disruption but watching developments carefully.

BOJ buying bonds aggressively to keep bond market stable, help underpin economy.

USD/JPY listless above 105.00

The yen remains unperturbed by the mixed market mood and Kuroda’s comments. USD/JPY keep its range play intact, now trading 0.18% higher at 105.10.