BOJ’s Kuroda: Current policy is more effective due to falling real rates

More comments flowing in from the BOJ Chief Kuroda, as he speaks at the press conference.

Key Points:

Companies more cautious on raising prices but don't expect this to continue forever

Haven’t reached the 2% inflation target

BOJ will continue to promote powerful monetary easing to achieve 2% price target

Japan is no longer in a state of sustained price declines

Momentum toward 2% price target is firmly in place

Yield curve control is sustainable policy framework allowing BOJ to flexibly respond to economy and prices

Expect impact of QE to strengthen in future

Real rates will fall as inflation picks up pace

Current policy is more effective due to falling real rates

Meanwhile, USD/JPY drops back to test 112 handle on BOJ Governor Kuroda’s comments.