Additional comments are crossing the wires from the Bank of Japan (BOJ) Chief Haruhiko Kuroda, as he now speaks about the recent rally in global stocks and the surge in the BOJ shares, adding that the central bank “will be vigilant to financial imbalances in guiding policy.”
Further quotes
Global stock price rises likely reflect market participants’ expectations of recovery in global economy, corporate profits.
Can’t say whether current asset price moves are appropriate, but must say high uncertainty remains on economic outlook.
Must be vigilant to excessive financial risk-taking, optimism on the outlook that could lead to bubble.
BOJ will continue powerful monetary easing for time being given downside risks to growth, but will be vigilant to financial imbalances in guiding policy.
Won’t comment on specific price moves of BOJ shares.
BOJ shares don’t reflect its profits, balance sheet, which is why their moves deviate from those of Nikkei average.
Looking at long-term perspective, fx rates are moving stably as major central banks guide policy with common goal of 2% inflation.
Once japan loses market trust over its finance, long-term rates could spike and diminish positive effect of BOJ’s rate policy.
Inflation won’t accelerate immediately with monetary easing, takes time particularly in japan where inflation expectations are adaptive.
Once Japan loses market trust over its finance, long-term rates could spike and diminish positive effect of BOJ’s rate policy.
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