Bank of Japan Governer, Haruhiko Kuroda said he saw no need to change the central bank’s 2% inflation target, which has helped keep currency moves stable in the medium to long-term.
The 2% inflation target will take some time, but it’s possible to achieve with powerful monetary easing.
Consumer price growth will stay negative for time being but rebound thereafter, gradually accelerates the pace.
One factor which might influence the monetary policy is climate change. Kuroda added that the Bank of Japan is not completely ruling out the idea of incorporating climate change in monetary policy.
“Eventually all parties must take into account Bank of Japan’s mandate of achieving price, financial stability in making decision on climate change relationship with monetary policy.” – Haruhiko Kuroda, Bank of Japan Governer.
There was little reaction in the market following the comments, but the yen is a focus considering how low US yields have dropped in recent days. Risk sentiment is likely to steer the direction of the safe-havens USD/JPY on Friday as the pair was last seen trading above 108.800 in the opening of Asian Markets.
