BOJ's Kuroda: Commitment to achieving the 2% inflation target will never be compromised

FXStreet (Bali) - BoJ's Governor Kuorda is crossing the wires, via Reuters, noting that the commitment to achieving the 2 percent inflation target will never be compromised, adding that he is confident BOJ can achieve its inflation target with "unwavering determination".

Kuroda comments

Kuroda: central banks can overcome the zero lower bound, as long as the policy maker commits decisively to fulfilling its mandate with well-designed unconventional policy measures

Kuroda: it has become a common understanding among central banks that unconventional monetary policy, despite some lingering skepticism from academic front, has proven to be effective

Kuroda: inflation is widely perceived to be ultimately a monetary phenomenon, so creation of a massive quantity of money would be a strong signal of a central bank's commitment to fighting deflation

Kuroda: monetising govt debt is widely understood to run the risk of eroding the credibility of the central bank and thereby potentially increasing risk premiums rather than reducing them

Kuroda: central bank's strong commitment to policy objectives, clear and consistent communication, and decisive action to fulfil the commitment would collectively be powerful enough to have significant impact on inflation