Haruhiko Kuroda Rooting a Moderate Policy Path
Haruhiko Kuroda (Bank of Japan Governor) told that the BoJ policy stabilization path will be very moderate and all possible threats will be closely monitored. The Governor also excluded financial public debt from the mandate. Specifically, he stated: "Assuming we do meet the 2 percent price target and then normalize policy, then this process would be very gradual and take economic conditions into account". Bank of Japan maintains its negative 0.1% interest rate policy and keeps purchasing government debt to curb the 10-year yields and the majority is convinced that exiting the stimulus program will be a very long and challenging process, which will definitely harm the market.