BOJ's Kuroda: Must support economy by continuing with current monetary easing

Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Wednesday that the BOJ must continue its support for the economic activity by continuing with the current monetary easing, as reported by Reuters.

Additional takeaways

"Unless Fed raises interest rates faster than their forward guidance shows, dollar rate may not be so much affected by US-Japan interest rate differentials."

"Our monetary policy is aimed at achieving 2% inflation target in a stable and sustainable manner."

"The current 2% inflation is simply caused by higher energy prices, will not be sustainable."

"We have to continue our monetary easing to support economic recovery and make the labour market much tighter."

"I'm quite sure we can achieve 2% inflation in coming years."

Market reaction

USD/JPY extended its rally on these comments and was last seen trading at its highest level in 20 years at 133.48, rising 0.7% on a daily basis.