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4 Oct 2013
BoJ's Kuroda hopes US resolves fiscal stalemate shortly
FXstreet.com (Barcelona) - Following the BoJ's monetary policy announcement today, governor Haruhiko Kuroda explained it had been kept unchanged as it is considered to be sufficient to fulfill the central bank's current objectives. Should the Japanese recovery be threatened by global economic strains, policy would be adjusted accordingly.
"For now we see Japan's economy making steady progress towards achieving the BOJ's 2 percent price goal even when taking into account various risk factors," Kuroda stated. He pointed out that according to the Tankan report business sentiment is improving and added that the recent decision to hike the sales tax was an important step towards rebuilding confidence in Japan's finances.
He commented on the political turbulences in the US, warning that a prolonged period of uncertainty could weigh negatively on world financial markets, which could in turn lead to a change of the BoJ's policy. He declined to comment however on how the BoJ would react in case of a US default.
"For now we see Japan's economy making steady progress towards achieving the BOJ's 2 percent price goal even when taking into account various risk factors," Kuroda stated. He pointed out that according to the Tankan report business sentiment is improving and added that the recent decision to hike the sales tax was an important step towards rebuilding confidence in Japan's finances.
He commented on the political turbulences in the US, warning that a prolonged period of uncertainty could weigh negatively on world financial markets, which could in turn lead to a change of the BoJ's policy. He declined to comment however on how the BoJ would react in case of a US default.