Bank of Japan Governor Kuroda spoke at the Federal Reserve Bank of Kansas City’s annual conference in Jackson Hole, Wyoming over the weekend. He expects BOJ to be continuing accommodative, no rate hikes in Japan:
- “Somewhat miraculously, now we have 2.4% inflation. But almost wholly caused by the international commodity price hike, energy and food”
- “So we expect that by the end of this year, maybe inflation rate may approach 2 or 3%, but next year, inflation rate again decelerate toward 1.5%”
- “So, we have no choice other than continued monetary easing until wages and prices rise in a stable and sustainable manner.”
This is not unusual from Kuroda, he, and other Bank officials, have been consistently saying the high CPI in Japan at present will not last. Let's see how that goes.
USD/JPY is indicating a little higher (weak yen) in very early Asia trade:
