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BoJ Kuroda will do whatever it takes to end deflation

The confirmation hearing for Mr. Kuroda as the new chief of the BOJ is taking place in the parliament, and the first comments are crossing the wires.

Among the standout headlines, he said that monetary policy will be deployed to conquer deflation, adding that BOJ has not bought enough assets to end deflation, also saying that the BOJ independence is secured by law.

Lastly, there was some notorious comments on his assertiveness to implement policies, although with little repercussion to the Yen so far, as he also said - 'a la Draghi Japanese version' - that he will do whatever it takes to end deflation.

To sum up, his comments sound very much as a recipe for disappointment - expectations being set very high - unless the bank starts executing an aggressive balance sheet expansion through domestic long term bond purchases and other risky assets in the coming months. If next April 4 BoJ meeting sees no much changes in policies, there might be more risk of Yen appreciation.

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