BoJ’s Kuroda: Decision taken last month was not a mistake

Bank of Japan (BoJ) Governor Haruhiko Kuroda is speaking in a panel discussion titled “Global Economic Outlook: Is this the End of an Era?” at the World Economic Forum (WEF), in Davos this Friday.

Key quotes

Decision taken by the board last month was not a mistake, will carry on accommodative monetary policy.

Expect wages to accelerate growth, and that will eventually help us to meet the 2% inflation target in a stable manner.

Japan’s economy can grow 1-2% in the next 2 years.

Two years of 2% growth means the GDP gap is closing.

Expect inflation rates to start to decline from February, overall 2023 to see inflation less than 2%.

Hopes digital transformation to raise growth potential in coming years.

Market reaction

USD/JPY is consolidating its renewed upside on Kuroda’s comments. The pair is trading at 129.45, adding 0.80% on the day.