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Bank of Japan (BOJ) Governor Haruhiko Kuroda reiterated on Monday that they will continue to closely monitor the impact of COVID-19 on the economy and will not hesitate to take additional easing measures as necessary, as reported by Reuters.

Additional takeaways

“BoJ hasn’t run out of policy tools to counter pandemic’s fallout.”

“We are flexible, innovative when considering measures to take to support the economy.”

“April-June was bottom for japan’s economy, which has picked up since then.”

“Japan exports, production, capex tend to be fairly robust but consumption, particularly service spending, is rather weak.”

“COVID-19 pandemic has suppressed consumer demand considerably, so inflation rate in Japan is likely to be negative for some time.”

“We expect consumer inflation to turn positive next year, gradually rise in the coming years.”

“One positive aspect of yield curve control is that it makes cooperation between monetary and fiscal policies almost automatic.”

“Our mandate is to sustain economic activity and achieve the 2% inflation target, not monetize government deficit.”

Market reaction

The USD/JPY pair largely ignored these remarks and was last seen losing 0.12% on the day at 105.47.