Market Updates: BOJ Keeps Easy Policy for 2% Target – Key Points

Key points from Kuroda’s speech:

• BOJ will persistently keep the current easy policy while keeping a close eye on both its positive and side effects.
• Kuroda said, “This is exactly the kind of situation in which policy sustainability and durability are important.”
• It is essential to sustain positive inflation for as long as possible under the current structure of QQE, with yield curve under control, and thereby firmly sustain the momentum toward 2% inflation.
• BOJ is taking time to achieve the 2% price stability target. “Downside risks mainly regarding overseas economies have come to warrant further attention.”
• “The BOJ needs to pursue the monetary policy that is most appropriate to the situation at the time while weighing its benefits and costs.”