In the post meeting press conference, BoJ Governor Haruhiko Kuroda said “domestic and overseas markets remain jittery but tensions have eased somewhat.” He pledged that “the BOJ will continue with measures that are exerting positive effects in the economy”.
“There is absolutely no need to change our 2% inflation target,” he said. “Given the pandemic, inflation is falling quite a lot in many countries. Prices may start falling in Japan as well. But that doesn’t mean Japan and western countries are discussing the need to change their inflation targets.”
On exchange rate, Kuroda reiterated that “currency rates should move in a way that reflects economic fundamentals.” He maintained the stance of “watching currency moves carefully from that perspective.”