Bank of Japan Governor Kuroda
  • Core inflation is around 3% now but expected to fall to below 2% next fiscal year
  • Cannot say that we have reached a stage where prices are expected to grow sustainably
  • Japan's economy still on recovery path from the pandemic
  • Aims to achieve 2% inflation target sustainably, alongside wage growth
  • Will continue with monetary easing to achieve sustainable, stable inflation
  • Will conduct flexible market operations

Given their policy decision earlier today, the remarks are what you would expect from Kuroda. In other words, he is downplaying last month's tweak to the yield curve control policy once again. If anything else, markets may have to wait until after the "Shunto" spring wage negotiations and maybe until after Kuroda departs from his post in April before we see any substantial changes to the BOJ narrative.