BoJ Governor Haruhiko Kuroda warned in a speech that “as risks regarding overseas economy are heightening, we need to be increasingly vigilant to the chance the overseas slowdown could affect Japan’s economy and inflation.” Also, “the situation has been changing rapidly, with investors’ risk aversion abating somewhat due to expectations for progress in the U.S.-China trade negotiations.”
Policymakers will scrutinize upcoming economic data at the next policy meeting on October 30-31. Kuroda emphasized that BOJ does not have any preconception at this point” on what policy steps it could take at the meeting. Though, he also acknowledged the need to main the yield curve control policies sustainable. He said “if the current low-interest rate environment is prolonged further, it will become necessary to pay closer attention to the cost of our policy.”
