In the post meeting press conference, BoJ Governor Haruhiko Kuroda said, “the yen’s recent weakening, as a whole, is definitely positive for Japan’s economy. It’s good for exports and lifts the yen-based profits firms earn overseas. It more than offsets the negative impact from rising import costs.”
“At present, currency rates are moving in line with fundamentals,” he said. “I therefore see no problems with the moves”. He added, “there’s no pre-set norm on the desirable level of real, effective exchange rates. I won’t comment on specific levels.”
“In the long run, if growth accelerates and the output gap turns positive, we’ll likely see inflation accelerate and heighten inflation expectations,” Kuroda said. “Under current conditions, there are more merits than demerits in maintaining ultra-loose monetary policy.”
