July 6, 2021

Is This A ‘Hint’ For Next Week’s BOJ Policy Meeting?

 Bank of Japan (BOJ) Governor Haruhiko Kuroda reiterated the central bank’s willingness to relax monetary policy further if necessary, by monitoring the impact of the coronavirus on the economy.

Kuroda also said that economic activity would remain below pre-pandemic levels for a while as sanctions to curb the spread of the virus burden the service industry.

Still, he is confident that the world’s third -largest economy will recover when the effects of the pandemic subside, with strong export demand supporting corporate profits and capital spending.

In addition, Kuroda also told that the BOJ will focus on maintaining the support measures given to small enterprises affected by the coronavirus.

Most analysts expect the BOJ to maintain current monetary policy for a while, including at a policy meeting next week, as the economy gradually recovers from the effects of the severe pandemic.

Entering the European session, the yen traded steady against the greenback dollar which recorded a decline following a mixed reading of the US NFP jobs report.