Published: Tue, September 27, 2016
Economy | By Melissa Porter

Bank Of Japan Governor Kuroda Confirms No Limit To Monetary Policy

The Bank of Japan Governor, Haruhiko Kuroda in a speech today provided further details on the central bank's monetary policy shift announced last week.

"There is no better opportunity than now to completely get out of deflation", Kuroda said.

He said that deepening the BOJ's negative interest rate and cutting the target for long-term interest rates, a policy adopted last week, will help make market conditions more accommodative.

The high levels of skepticism concerning the policy changes stayed the same as the yen found a fresh support level.

It's a far cry from the fanfare that greeted Kuroda, now 71, in 2013.

Major Japanese exporters ended mostly lower, with Toyota shares down 0.6%, Nissan off 1.3% and Honda dropping 2.1%.

In that light, some say the first of three debates between US presidential candidates Trump and Hillary Clinton has the potential to move the dollar.

The Canadian dollar was steady at C$1.3172 to the dollar after sliding sharply on Friday from a peak around C$1.3000.Brent crude was up 0.7 percent after dropping almost four percent on Friday amid signs Saudi Arabia and Iran were making little progress in achieving preliminary agreement to freeze production.

Under a new "yield curve control" (YCC) framework, the BOJ's main means for monetary easing would be to deepen negative interest rates from the current minus 0.1 percent, or lower its 10-year government bond yield target - now set at around zero percent, Kuroda said. The EUR/JPY is trading lower at 113.0121 Yen, down 0.43%, well off the session high of 113.5100 Yen.

The materials sector gained slightly, however, rising 0.26% by the closing bell in Sydney.

OPEC producers are slated to meet this week, behind the scenes at an Algerian energy conference, to once again discuss an elusive production freeze deal, though analysts were sceptical.

Major regional banks managed a higher finish, with Australia and New Zealand Banking Group up 0.04%, Commonwealth Bank of Australia virtually flat, National Australia Bank rising 0.14% and Westpac adding 0.1%.

The down under dollars were both weaker against the greenback, with the Kiwi last 0.09% weaker at NZD 1.3816 and the Aussie retreating 0.11% to AUD 1.3128 per $1.

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