The Bank of Japan (BOJ) Governor Haruhiko Kuroda sounded pessimistic about the outlook on Japan’s economy and inflation while speaking in an online conference this Monday.
“Japanese economy in severe condition but picking up.”
“Uncertainties surrounding the outlook remain extremely high.”
“Economy likely to improve as a trend but the pace of the recovery remains moderate.”
“Risks are to the downside on the economy, inflation.”
“Won’t hesitate to take additional easing steps with an eye on pandemic’s impact on the economy.”
“Japan’s financial system maintaining stability as a whole.”
His comments come after the central bank’s estimate showed that Japan’s output gap slump by 4.83% in the second quarter of the current fiscal year.
USD/JPY flirts with highs
USD/JPY is steadily inching higher, now testing the daily highs at 105.61, up 0.25% on the day.