BoJ Governor Haruhiko Kuroda told the parliament today that recent sharp yen falls are “negative and undesirable” to the economy. The depreciations raise uncertainty over the outlook and make it difficult for companies’ business planning. He pledged again to carefully monitor the developments and their impacts.
Kuroda also reiterated that BoJ must maintain ulta-loose monetary policy. He added that Japan is not facing stagflation, where high inflation and economic stagnation co-exist, and was not facing the risk of sliding back into that state.
