BOJ governor Kuroda still up to the press conference mic 16 June

  • inflation will rise but still only halfway now
  • if economic growth continues then output gap will shrink
  • that process will have an impact on inflation
  • BOJ not ready to start discussing exit strategy with low inflation still
  • not correct to link shrinking population and prices
  • other nations have shrinking population but not deflation
  • in theory ETF purchases could drop before 2%
  • no automatic link between ETF and JGB purchases
  • various ways to reduce mon pol easing when it's time
  • short-term rate, balance sheet a focus when normalizing

USDJPY back a little lower at 111.25 having initially rallied on the dovish tones.

Kuroda- Talk to the hand