The Bank of Japan (BOJ) buying of risky assets, including ETFs, is an extraordinary measure that no other major central bank is taking, the central bank Governor Haruhiko Kuroda said in his scheduled speech before the Japanese parliaments.
Additional comments
“The BOJ guiding monetary policy keeping in mind that excessive fall in super-long yields could have a negative impact on the economy.”
“Will take into account effects, side-effects of policy, aim for moderate inflation accompanied by growth in corporate profits, jobs and wages.”
“BOJ's risky asset buying, which is part of its ultra-loose policy, is a necessary step as it is expected to take more time to hit 2% inflation.”
“Must be vigilant to the potential impact of increasing covid variants, though Japan’s economy overall is improving thanks to strong global recovery.”
“Recent stock market moves reflect investors' view that global economy, corporate profits will continue to improve. “
“Will take into account risk of financial imbalances in guiding monetary policy.”
Separately, a senior central bank official was reported, as saying that the “BOJ is ready to extend the pandemic-relief programme beyond sept deadline if needed.”
“Sectors particularly hit hard by pandemic, such as restaurants and hotels, facing funding strains,” the official added.
USD/JPY reaction
USD/JPY is off the five-week highs, holding steady around 109.60 amid upbeat market mood and a pause in the US dollar rally.