An interview with Bank of Japan (BOJ) Governor Kuroda in the Australian Financial Review after the G20 finance ministers meeting.
“Our commitment – you can call it forward guidance – is to continue the QQE (quantitative and qualitative easing) until the 2 per cent inflation target is met: 2 per cent inflation sustained in a stable way.
“We cannot pinpoint 2 per cent every month because inflation fluctuates, but we must reach a 2 per cent stable rate. Until that time we will continue the QQE”
This is standard stuff from kuroda, but his other comments were more interesting (bolding is mine):
“All central banks must be cognisant of the need to co-operate to exchange views and make quite clear their monetary policy stance. “Particularly they have to be cognisant of the potential impact on the global economy.”
“The fact is there will be sequencing of the normalisation process. I agree that Japan and Europe have continued to have very accommodative monetary policy and it could mitigate the impact of the Fed’s action on capital flow in that sense. It is complicated, but prima facie you can say this.”
i.e. The Fed may be ‘tapering’ but we’re still pumping out the cashola.
Bank of Japan backs yen pumping to cushion Fed taper Australian Financial Review (gated)
