BOJ’s Kuroda: Japan to reach 2% inflation target in FY 2017

More comments flowing in from BOJ Chief Kuroda, as he addresses the Q & A session at the presser.

Key Quotes:

Deepening neg rates would be among options when easing policy further as needed excessive drop in yield curve could harm economy

Will use yield curve control to prevent damage to sentiment

This new frame work is a stronger version of previous one

Doesn't think BOJ coming close to its limits on monetary easing

Expect price trends to rise gradually

Inflation expectations need to converge towards 2 pct in order to achieve price goal sustainably

Overshoot commitment does not mean meeting 2 pct inflation will take longer

Want government to proceed with fiscal policy and structural reforms in line with boj-govt joint statement

Weakening inflation expectations since last summer was a factor behind lagging inflation

Now expect to hit CPI target during FY 2017

Mindful of how neg. rates can affect bank profitability

Risks are high for BOJ price forecast for during FY 2017

BOJ law doesn't allow foreign bond buys. That's under jurisdiction of fin min

Lower real interest rates have the biggest impact on boosting economy