BoJ's Kuroda: Will continue our monetary easing to achieve 2% inflation target

"We will continue our monetary easing to achieve the 2% inflation target in a stable and sustainable manner," Bank of Japan Governor Haruhiko Kuroda said on Wednesday, as reported by Reuters.

Additional takeaways

"Once the impact of energy, and fuel price rises start waning, Japan's inflation rate will slow down to less than 2% in next fiscal year."

"Central banks in the US and Europe have completely shifted to fighting inflation, which is quite appropriate in view of the high level of inflation."

"Big difference between Japanese monetary policy and US, European policies. The difference reflects difference in economic and price situations."

"Wages are certainly rising now but insufficient to guarantee 2% inflation in a sustainable and stable manner, so we have to make the economy grow in coming months and years."

"Cannot simply jump to conclusion Japan will be able to achieve 2% inflation in two years, or one year's time, so that we can change monetary policy now."

"If currency movement is so fast and uni-direction, probably caused by speculation, that would be bad for the economy."

"Yen depreciation may have a good impact on macro-economy as a whole, but there are some sectors which are suffering from weak yen."

"We have to carefully watch, and analyse the impact of currency movements on the economy."

"Japan's government intervened in the currency market to shore up the yen or stop its one-sided moves, which was quite appropriate."

"At this week's IMF meetings, many emerging economies will probably complain about the almost universal rise in the dollar that made them raise rates more than appropriate from a domestic economy point of view."

"The third arrow of Abenomics, such as deregulation, had made some contribution but not so much with japan's potential growth still around 1%."

Market reaction

USD/JPY continues to rise following these comments and was last seen trading at fresh multi-decade highs near 146.80, gaining 0.6% on a daily basis.