MNI BRIEF: BOJ Kuroda Vigilant On Economy, Prices, Markets

Bank of Japan Governor Haruhiko Kuroda on Monday said he remained vigilant against financial and forex market developments and their impact on economic activity and prices.

“For the time being, the BOJ will closely monitor the impact of Covid-19 and will not hesitate to take additional easing measures if necessary, and also it expects short- and long-term policy interest rates to remain at their present or lower levels,” Kuroda said at the opening of the branch managers’ meeting, (See: MNI INSIGHT: Rising Covid Cases Cloud BOJ Consumption Views)

He also stuck to his optimistic view on the outlook for Japan’s economic recovery and price rise at the quarterly branch managers’ meeting. “Japan’s economy has picked up as a trend, although some weakness has been seen in Japan, mainly due to the impact of Covid-19,” he said.

“Japan’s economy is likely to recover, with the impact of Covid-19 and supply-side constrains waning, although it is expected to be under downward pressure stemming from the rise in commodity prices due to factors such as the situation surrounding Ukraine,” Kuroda said on the near-term outlook, adding that CPI is expected to increase gradually year-on-year, (See: MNI INSIGHT: BOJ Likely To Up Price View, But Policy Unchanged).