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BoJ's Kuroda: Adjustments to monetary policy not necessary for now

FXStreet (Łódź) - BoJ governor Haruhiko Kuroda said in a television appearance on Thursday that he didn't consider the current weakness of the yen as extremely harmful for the Japanese economy. The currency moves reflect economic fundamentals in his opinion, which is desirable.

Kuroda signaled that the central bank was observing closely the direction of different monetary policies. "The US economy is recovering steadily, allowing the Fed to taper asset purchases while BoJ is maintaining massive stimulus," he remarked.

Moreover, Kuroda acknowledged the contraction of the Japanese economy in Q2, attributing it to the introduction of the sales tax hike in April, and said he expects a rebound in Q3.

"Fiscal and monetary stimulus can cope with the effect of the tax rise," he suggested.

The BoJ head stressed that currently there was no need for additional monetary policy steps, but that the central bank would act if the price target was at risk, easing the policy further.

During Kuroda's speech USD/JPY rose above 107.00 on his comments about the weak yen and fell again below that level following the remark that monetary policy should remain on hold for now.

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