Kuroda speaking

Bank of Japan Governor Kuroda:

  • Strengthened commitment to price target with forward guidance
  • To allow bond yields to move in double the range of +0.1% and -0.1%
  • Board member Kataoka opposed outlook report saying prices not rising toward 2%
  • Will adjust policy as needed to keep momentum toward 2% target
  • Expect factors that delayed increase in inflation to dissipate in future
  • Momentum toward 2% inflation is firmly in place
  • See no need for additional easing for now
  • Forward guidance means to keep rates extremely low for extended period of time
  • Needed to allow some moves in bond yields in light of market functioning
  • Allowing bond yields to move more flexibly, doesn't mean we intend to raise interest rates.
  • We have no specific timeline for hitting 2% target
  • Don't think policy until now was mistaken
  • JGB market function will improve by allowing more flexible yield moves
  • Increased purchases of topix linked ETFs because they more broadly cover market
  • Today's decision in aimed at making QQE more sustainable
  • Possible for ETF purchases to fluctuate around 6 trillion JPY
  • Forward guidance refutes speculation that the BoJ is heading for the exit or raising rates
  • See no big problems with financial intermediation
  • There is risk of financial intermediation stagnating in the future
  • No plans to continue widening JGB 10-year yield range

And after all of that, USD/JPY is basically still flat on the day. Things largely unchanged and keeping with the current policy trajectory as expected.

Is this the same chart that I've already posted?

The USD/JPY is now a whole 10 pips lower than the above chart.