- Monetary policy aimed at achieving 2% inflation in a stable, sustainable manner
- Current 2% inflation is simply caused by higher energy prices, will not be sustainable
- Unless Fed raises rates much faster than suggested, dollar not so much affected by US-Japan rate differentials
He is adamant that the current easy policy is the right one and it isn't the key reason why the yen has been weak in the past few months. I'm sure everyone is rolling their eyes but hey, Kuroda has got a job to do. The fact that the BOJ remains in no position to tweak policy speaks volumes about the underlying problems in Japan for roughly two decades now. And policy/rates divergence is definitely a key factor driving the latest moves in the market, in spite of what Kuroda & co. might say otherwise.