Bank of Japan (BoJ) Governor Haruhiko Kuroda said on Wednesday that the BoJ will further relax monetary policy such as by reducing interest rates if necessary, as reported by Reuters.
Additional takeaways
"Virtuous cycle of corporate profits, business fixed investment will continue despite the impact of supply chain disruptions, factory shutdowns in South East Asia."
"BoJ tries to avoid any direct involvement in micro-level asset allocation in helping address climate change."
"We will impose some discipline on financial institutions so their investments actually contribute to climate change mitigation and adaptation."
"Green bonds will be included in our corporate bond-buying program but without significant favour or pre-determined weight."
Market reaction
The USD/JPY pair gained traction in the last minutes but the renewed USD strength seems to be fueling the pair's upside. As of writing, USD/JPY was down 0.26% on the day at 109.38.