BoJ: 2% objective and level of Monetary Policy easing to stay - AmpGFX

Greg Gibbs, Director Amplifying Global FX Capital, notes that in his speech on Monday BoJ Governor Kuroda sad that, “With the results of the assessment, the Bank will discuss what should be done in order to make sure that the price stability target of 2 percent is achieved at the earliest possible time.

Key Quotes 

“Let me emphasize that the assessment is conducted with the aim of achieving the 2 percent target at the earliest possible time. A reduction in the level of monetary policy accommodation, which is being called for by some market participants, will not be considered.”

So the objective is still to achieve the 2% price stability target at the earliest possible time (although earlier references to a 2-year horizon were omitted from the speech). And a reduction in the “level” of accommodation “will not be considered.”

The “level” may not be reduced, but this could mean a change in the mix of policy, with some elements reduced and others increased.”