Oct 24 2014
Think hard about the speed of projected yen declines: Says Kuroda
Rate Range Projection by Bank
Next week 108.50- 109.50
Next 3 months 105.00 - 115.00
The yen is set for the biggest decline since April 4, 2013, when Kuroda announced the start of unprecedented stimulus to trigger 2 percent inflation in two years. Facing projections for failure in reaching the target on time, Kuroda said today the central bank was aiming to pre-empt any risk of a delay in ending Japan’s “deflationary mindset.” Bank of Japan Governor Haruhiko Kuroda is forcing analysts to think hard about the speed of projected yen declines after he surprised markets for a second time with monetary stimulus.
The yen tumbled as much as 2.1 percent to a six-year low of 111.53 per dollar after the BOJ increased its goal for annual monetary base expansion to 80 trillion yen ($720 billion) from 60 to 70 trillion yen previously. That surpassed the median forecast among analysts surveyed by Bloomberg News for the currency to reach 111 at the end of March, and approached the 112 predicted for the end of June.