Former BoJ Kuroda: Central bank should not pause approaching policy normalization

Former Bank of Japan (BoJ) Governor Haruhiko Kuroda said in an interview with the Asahi newspaper that the central bank should continue pushing the monetary policy towards normalization.

Remarks

The BoJ would raise the policy rate in April if you think about it normally.

The US-Iran war would only serve to accelerate interest rate hikes.

It should not place a pause on the process of monetary policy normalisation.

Sees no problem in the BoJ raising interest rates by 3-4 times to reach "around 1.50%" in 2027.

Market reaction

There seems to be no key impact of former BoJ Kuroda's comments on the Japanese Yen (JPY). As of writing, USD/JPY trades marginally higher to near 160.00.