BOJ’s Kuroda: Time needed for effect of monetary policy to spread to economy

Bank of Japan (BOJ) Governor H.Kuroda is now on the wires, speaking on the central bank’s monetary policy stance.

Key Quotes:

Expect the effects of negative rates to spread to the economy and prices

Some time needed for effect of monetary policy to spread to economy

To be clear, not saying that BOJ sill stand pat until policy effects can be confirmed

Recovery in exports has paused due to slowdown in overseas economies

Risks to the outlook are tilted to the downside

BOJ will continue to carefully examine risks, won't hesitate taking additional easing steps if needed

Pace in improvement in corporate profits is slowing

QQE with negative rate is extremely powerful policy scheme

Expect overseas economies to rebound, led by strong US economy

BOJ will carefully consider how best to make best use of QQE with negative rates, will act decisively as we move on to hit 2 pct target

Continued tight labour market is unique aspect of current business cycle