Last quote by Haruhiko Kuroda
Haruhiko Kuroda quotes
The exchange should reflect the economic fundamentals and be stable. Because economic fundamentals move only slowly, so if the economic fundamentals move slowly then the exchange rate also moves slowly. Not gyrate like in the last couple of months.
As far as his fiscal stimulus package is concerned, I think it is good because large-scale tax cuts coupled with significant investment in infrastructure would raise U.S. economic growth in coming years and that would also raise global economic growth in coming years.
Although protectionist policy is not good for the world economy, not good for even the U.S. economy, on balance, I think fiscal stimulus would dominate U.S. economic growth and also could affect positively the world economy.
On the other hand, the question of his somewhat protectionist trade policy could be a matter of concern.
Overall, both the global and Japan's economies are moving in a positive and more desirable direction.
The global economy seems to be finally entering a new phase, by putting the negative legacy of the global financial crisis behind it, although considerable uncertainties lie ahead.
There is still a lot of uncertainties in global developments, with big elections in France and Germany coming up in 2017.
Thus, financial authorities are facing new challenges in terms of obtaining information and maintaining financial stability.
We don't have to sacrifice consumer confidence and security because if they go down...it would hamper the long-term development of fintech.
We're likely to see such effects of the so-called policy mix going forward.
We don't think it's desirable for the yield curve to flatten. It won't be surprising to see super-long bond yields to rise a bit more. If asked whether we would try to push down super-long yields if they rise more, the answer is no.
There's absolutely no chance now of reducing the balance of our government bond holdings.
There may be some modification to our forecast that inflation will hit our 2 percent target during fiscal 2017.
If 10-year government bond yields fall well below our target of around zero percent, we may slow our bond purchases. But we don't see an immediate possibility of our bond buying falling sharply from the current pace.
But we don't see an immediate possibility of our bond buying falling sharply from the current pace.
It's not a serious problem, but a problem from time to time as it could result in excessive (yen) appreciation and disrupt markets.
But if there is a big shock and we need to further strengthen our monetary accommodation, we'll do more.
This kind of synergy, or what you can call a policy mix, could be quite useful.
Even if the amount of our asset purchases declines or increases, that doesn't matter as long as we continue to control the yield curve as appropriate.
I don't think there was a strong feeling shared among (G20 nations) that monetary policy was reaching its limits or that an over-reliance on monetary policy was causing big problems.
In guiding monetary policy, we will take into account not just how our policies affect lending rates and the economy, but how they affect the finance sector.
There is no better opportunity than now to completely get out of deflation. Talking about the limits of monetary policy does not help at all.
There is no limit to monetary policy. In designing monetary policy, the BOJ will relentlessly pursue innovation and never hesitate to challenge.
In order to achieve the 2 percent inflation rate as soon as possible, we have decided to implement a new framework for the current quantitative and qualitative easing (QQE). The new framework, which centers around a yield curve control, will be more flexible to prices and financial conditions compared to the original methods of controlling the growth of monetary base and outstanding government bonds.
I don't think the BoJ has become cornered. We've changed the policy target. But we haven't abandoned our previous policies. We've simply strengthened them.
There was no special instruction from the premier. We exchanged various views based on recent developments including Asian economies.
For Japan in particular, the impact of the negative interest rate policy on the profits of financial institutions tends to be relatively large, due to such factors as the amount outstanding of deposits far exceeding that of lending, and to the spreads between deposits and lending rates already being extremely small following prolonged competition among financial institutions.
The central bank should always prepare policy options to address such situations.
That said, we should not hesitate to go ahead with (additional easing) as long as it is necessary for Japan's economy as a whole.
There is no free lunch for any policy.
The Bank of Japan will continue to carefully examine risks and take additional easing measures without hesitation. It could be that long-term inflation expectations are yet to be anchored in Japan.
Japanese inflation dynamics remain vulnerable.
Technically there definitely is room for a further cut.
At the moment, U.S. markets are attracting global funds. Globally there remain risks, such as European financial institutions or the Chinese yuan. We have to see if investors are ready to diversify to other markets than the U.S. in coming weeks.
I expect there to be a frank exchange of views on how to achieve price stability and growth using monetary, fiscal and structural policies reflecting each country's needs.
We're now scrutinizing how the effects of our policy steps spread to the economy. That doesn't mean we won't do anything until the effects are clear. If market moves, be it currency rates or something else, threaten achievement of our price target, we won't hesitate taking additional monetary easing steps.
The central bank will act "decisively" to achieve its 2 percent inflation target.
The BOJ won't hesitate to take further easing steps if necessary.
There's a sense of anxiety spreading in the public about the fact the BOJ is implementing these abnormal policies.
Having said that, I don't think there are limits to monetary policy.
I know such a programme is adopted by the ECB (European Central Bank) ... At this stage, we don't have any plans to consider this option. This wasn't discussed at today's meeting.
There's absolutely no change to our stance of aiming to achieve 2 percent inflation at the earliest date possible, and to do whatever it takes to achieve this. If needed, we can deepen negative rates much more.
If there is any risk of declining inflation expectations affecting achievement of our price target ... we won't hesitate to further ease monetary conditions.
For now, we would like to scrutinize how the policy effect of our 0.1 percent negative rate policy filters through the economy.
We have absolutely no plans to push rates further into negative territory at a pre-scheduled timing. Like the European Central Bank, the BOJ's policy is aimed at achieving price stability. it was desirable for currencies to move stably, reflecting fundamentals.
I'm convinced that such rises in bank lending would have a positive effect on Japan's economy.
I want to carefully watch how recent market volatility would affect Japan's economy and prices.
In terms of interest rates, the Bank of Japan has decided to implement a negative rate of minus 0.1%. Going forward, if it becomes necessary, we would look at making that even lower, if necessary.
We think there is an increasing risk that an improvement in the business confidence of Japanese firms and the conversion of deflationary mindset may be delayed, and that the underlying trend in prices might be negatively affected.
What's important is to show people that the BOJ is strongly committed to achieving 2 percent inflation and that it will do whatever it takes to achieve it.
We'll continue to watch carefully how recent market moves could affect Japan's economy and prices.
More than two years have passed since the BOJ introduced quantitative and qualitative easing (QQE). At the outset, many people were sceptical about the prospect of Japan's economy overcoming deflation.
Some people may still be sceptical. But…economic and price trends have clearly changed under QQE. This is an indisputable fact.
We can still ease our monetary policy substantially if we consider it necessary.
We have to have a little patience. We will monitor everything closely. But again, the positive inflation trend is absolutely intact.
The quantitative easing, the qualitative easing, the negative interest rate – these are the three dimensions where we can act.
The timing for achieving the two percent price target (for inflation) has been delayed from the first half of 2016 to the second half, but this is largely due to the effect of falling energy prices.
We plan to publicise the outcome of our investigations.
If Japan is making steady progress toward achieving 2.0 percent inflation, there's no need to take additional steps.
I can say that we are at the moment of truth, the critical moment, in our process of shaking free from deflation.