Bank of Japan Governor Haruhiko Kuroda remains optimistic on the inflation outlook, as he says on Wednesday that the country's consumer inflation may approach his 2% target, as rising raw material costs push up wholesale prices.
Additional quotes
“The central bank would maintain its ultra-loose monetary policy to ensure any rise in prices would be accompanied by higher wages and a recovery in the economy.”
"It's true there's a chance consumer inflation will approach 2per cent through various channels.”
"But what's desirable is for the economy to recover steadily and push up corporate profits, thereby leading to higher wages and inflation. We'll patiently maintain an ultra-easy policy to achieve this at the earliest date possible.”
"I don't think Japan's economy is in a state of stagflation.”
These comments come after the central bank's liquidity injection into the markets.
Market reaction
USD/JPY is trading listlessly around 113.70, awaiting the Fed outcome for the next directional move.