BoJ stimulus is not aimed at Yen depreciation

During the G-20 meeting the Governor of the Bank of Japan Haruhiko Kuroda reiterated that recent bold actions introduced by the BoJ are not aimed at the depreciation of the Yen. Nation's Finance Minister Taro Aso, however, noticed that the unprecedented monetary stimulus could be criticized at a G20 meeting in Washington. The G-20 nations are going to affirm a commitment to avoid competitive devaluation by any nation. Earlier this month, Kuroda pledged to inject about $1.4 trillion into the struggling economy in less than two years, in order to revive growth and achieve the 2% inflation target. 

"We aren't intending to weaken the currency at all," Kuroda told reporters today in Washington, where he's attending his first G-20 gathering as central bank chief. The BOJ's easing "is for a domestic policy goal to achieve the 2 percent inflation target at the earliest possible time," he said.

"Chances are high that the result of the G-20 meeting will deliver tailwinds for Japan and yen depreciation," Takahiro Sekido, a strategist in Tokyo at the Bank of Tokyo-Mitsubishi UFJ Ltd., who formerly worked at the BOJ, said ahead of Kuroda's comments.