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BOJ’s Kuroda: strengthening of yen reveals risks for deflation

BOJ Governor Haruhiko Kuroda stated on Thursday that the stronger yen revealed the obstacles on the way of neutralisation of deflation. However, he said nothing when the BOJ was going to implement new package of measures to hinder a growth of the yen and accelerate the inflation growth.

 

Despite weak and unstable growth of Japanese economy and weakening inflation tendencies, the BOJ did not revise on Thursday its monetary policy and asset purchase programme. Investors started disposing of securities of Japanese companies on this background which had forced the yen to grow. The yen continues to strengthen without additional easing measures.

 

Mr Kuroda stated he was ready to use all available instruments if the dynamics threatened the achievement of 2% inflation rate. He also said that the BOJ had monitored a market rate.

 

On the forthcoming Brexit referendum, Mr Kuroda called it as a serious risk for Japan’s economy. At that time, he expressed his confidence that the central bank had opportunities to resist all possible problems that might occur in case of the UK’s exit.