"The economy is on track. The real economy, prices and expectations -- all of them are improving as we intended"
- Haruhiko Kuroda, BoJ Governor
The Bank of Japan confident in reaching its inflation level within the planned period. Nothing new. However, BoJ's Governor Haruhiko Kuroda also said he expect a pickup in wages by next spring. At the same time, Kuroda pledged to do whatever it takes to defeat deflation, while refusing to discuss specific additional measures the BoJ might take. The latest fundamental reports are bolstering the case Abenomics are exerting its effect and sending encouraging signs, suggesting the world's third largest economy will gain momentum in the coming months. While analysts are debating on whether 2% inflation will be reached within two years or not, Japan's benchmark Nikkei 225 soared 37% over a year on the back of weakening Yen, which boosted profits of nation's exporters. Nevertheless, it would be hard to implement structural reforms, which will affect the economy and the general public in the short term.
On Friday the Japanese Yen lost 0.27% against the U.S. Dollar amid Kuroda's comments, while the biggest driver for the pair came from United States, where politicians are moving closer to a budget deal and raising the debt limit, which would prevent the economy from defaulting on October 17. Meanwhile, analysts are expecting USD/JPY to hit 100 during the next couple of days, however, the pair will face a strong resistance around this level.
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