Bank of Japan (BOJ) Governor Kuroda comments USDJPY
Central banks can overcome the zero lower bound, as long as the policy maker commits decisively to fulfilling its mandate with well-designed unconventional policy measures
It has become a common understanding among central banks that unconventional monetary policy, despite some lingering skepticism from academic front, has proven to be effective
Inflation is widely perceived to be ultimately a monetary phenomenon, so creation of a massive quantity of money would be a strong signal of a central bank’s commitment to fighting deflation
Monetising govt debt is widely understood to run the risk of eroding the credibility of the central bank and thereby potentially increasing risk premiums rather than reducing them
Central bank’s strong commitment to policy objectives, clear and consistent communication, and decisive action to fulfil the commitment would collectively be powerful enough to have significant impact on inflation
BOJ’s commitment to achieving the 2 percent inflation target will never be compromised
Am confident BOJ can achieve its inflation target with “unwavering determination”
