BOJ Governor: Stocks Surge Still Reasonable Price

Learn Forex News : Governor of the Bank of Japan, Haruhiko Kuroda, today confirmed that the surge in the value of Japan's current financial market is not a bubble or a bubble. According to him, the movement of asset prices are still normal and not show symptoms of excessive. However, the BOJ committed to continue to monitor the effects of monetary easing has just been released to the situation in the asset market.

"I do not see the stock and bond prices led to a bubble, and it does not look likely in the near future," Kuroda said in a hearing with the agenda of Parliament. His comments aimed to answer the public reaction to term strengthening of the Nikkei stock index and the weakening yen after the central bank's aggressive policy. Spot Nikkei up 3.43% to 13.068 in the morning session and government bond 10-year tenor also fell to record lows in the past decade at 0.405%.

Kuroda refused discourse debate about the reasons behind the central bank's monetary easing. According to the new governor, too fast to debate the effects and risks of a policy which had just taken. But he intends to make sure it will review the quality of the financial system at the end of the policy period later, given the increased interest on the bonds susceptible damaging financial climate and the performance of financial sector firms.

BOJ says ready for launched yesterday continued an aggressive program to end the deflation national phase that has lasted for 15 years. The Board of Governors has approved an increase to 2% inflation target as soon as possible, with orientation as long as two years. If the surge in consumer price index will be temporary, Kuroda is committed to continue to maintain a loose policy. However, if the symptoms appear the price jumped to over 2%, then the authorities are ready to tighten policy again.