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BoJ's Kuroda: Easing having intended effect

FXStreet (Łódź) - Following the BoJ's decision today to keep monetary policy unchanged in August, governor Haruhiko Kuroda said that the record easing was maintained in order to offset the still visible impact of the sales tax hike implemented in April.

He pointed to the good performance of the Japanese economy, which has been growing above potential despite the drop in demand. The situation labor market continued improving and investment activities of firms accelerated, he said.

Kuroda stated that QQE would be continued until the 2% inflation target was reached, most probably in the middle of the projection period between fiscal year 2014-2016. He added that the central bank would continue observing upside and downside risks to the economy and act depending on the developments.

Furthermore, the BoJ governor assured that the further strengthening of the US dollar against the yen wouldn't be negative for the Japanese economy.

During the speech USD/JPY rose briefly to 105.00, but then slid again to 104.95.

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