BoJ’s Kuroda: Japan’s economy has picked up as a trend

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The Japanese economy has picked up as a trend although it has remained in a severe situation due to the coronavirus pandemic, Bank of Japan (BoJ) Governor Haruhiko Kuroda said on Wednesday, as reported by Reuters.

Additional takeaways

“Japan’s economy will recover with the impact of COVID-19 waning due to further progress in vaccinations.”

“Japan inflation pressure weaker than in US, EU.”

“Underlying inflationary dynamics not so weak.”

“Japan’s inflation rate to steadily go up and eventually reach 2% target, although not before 2023.”

“BoJ committed to achieve 2% inflation target as early as possible by making monetary policy as flexible, accommodative as possible.”

Market reaction

The USD/JPY pair extended its daily slide following these comments and was last seen trading at 109.14, where it was down 0.5% on a daily basis.