BOJ’s Kuroda: Yen rise, stock price falls not caused by negative rates

By FXStreet BOJ Governor Kuroda, speaking in NY, said he doesn’t think yen rise, stock price falls were caused by BOJ’s adoption of negative interest rates.

Headlines

Won’t hesitate to ease monetary conditions further if needed, utilising 3 options individually or collectively

Can clearly say BOJ monetary policy is not targeting exchange rates

Says BOJ will continue QQE with negative rate for as long as needed to hit price target

BOJ will examine risks to economy, prices and won’t hesitate taking
additional easing steps if needed to hit price goal

BOJ will achieve price target ‘for sure’ by making full use of existing framework

3-tier system of negative rate framework means direct negative impact on financial institutions’ profits is minimised

What matters for economic activity is not nominal interest rate but real interest rate

Both monetary policy and growth strategy are necessary to beat deflation

Japan’s economy has continued moderate recovery

Underlying trend inflation has been steadily improving

Compared to time before adoption of QQE, inflation expectations have increased on the whole
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Source:: FX Street