BOJ gov Kuroda press conference 23.01.2018

  • First the read out, then more comments to follow, stay tuned
  • Kataoka dissented to forecast that inflation would reach 2% in 2019/20
  • BOJ to maintain policy to reach 2% target
  • Price momentum still lacks strength
  • NOT in a situation to consider exit from QQE
  • Still some distance to reach target
  • Need to maintain strong monetary easing
  • No need to change ETF purchases
  • No need to adjust YCC simply due to a rise in inflation expectations
  • Day to day JGB buying operations do not indicate future course of monetary policy
  • Do Not See Yen Rise In Particular As Dollar Falls Stem From Euro Strength

JPY weakens back to BOJ announcement levels on Kuroda’s resilience to keep everything in place USDJPY 110.95 , crosses in a bit of a lift EURJPY 136.05, GBPJPY 155.20.
Kuroda’s speech is usually going on for quite a while, so we can’t exclude anything yet but Kuroda is trying to keep the ball of the best he can sounding very dovish today.
He really wants to counter the JPY uptick we had as BOJ adjusted the long JGB buying a couple of weeks ago.
My Spring expectation for any major change in plans feels more plausible again .

As the meeting progresses USD and JPY crosses continue to gain ground : USDJPY 111.15, EURJPY 136.20, GBPJPY 155.30

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