BOJ's Harada says no risk of hyperinflation in quest for 2% inflation target

BOJ board member Harada 29 June

Stating the obvious somewhat eh?

• weak yen will stimulate economy, push up prices and eventually work to push up interest rates
• BOJ hasn't decided to fix long term rates for a long period, unlike what US Fed did in 1942-51
• current programme is based on premise that BOJ will ensure inflation won't accelerate well above 2% , will prevent that by raising rate if needed
• don't know when BOJ will withdraw stimulus but at some point it will need to tighten policy

USDJPY down to 112.17 from 112.30

Strange, cable went up 130 tics yesterday when Carney said the same thing. Funny ol' game.

BOJ's Harada - Policy will need to be tightened at some point