MNI BRIEF: BOJ: Rapid, One-Sided FX Moves Undesirable - Kuroda

Bank of Japan Governor Haruhiko Kuroda said the recent rapid and one-sided moves in the yen have a negative impact on Japan’s economy and are "undesirable" at a press conference on Friday.

“It is extremely important for foreign exchange rates to move stably, reflecting economic and financial fundamentals,” Kuroda told reporters.

The Japanese government was thought to have intervened to support the yen on Oct 21 after it traded near JPY152, though this has not been officially confirmed.

Kuroda said that the upward revision of its inflation view for this fiscal year was due mainly to the rise in import prices and pass-through of cost increases. The Bank of Japan maintained its policy settings and easing guidance after completing its two-day meeting earlier on Friday. (See MNI BRIEF: BOJ On Hold; Keeps Easing Policy Guidance)

However, he warned that the year-on-year rise in core CPI will likely fall below 2% in fiscal 2023 as the impact of cost-push price rises weakens.

Kuroda also said that it was desirable for the BOJ to maintain easy policy to achieve its 2% inflation target accompanied with wage hikes.