BOJ Kuroda: excessive yen appreciation could affect inflation trend

[TOKYO] Bank of Japan Governor Haruhiko Kuroda said the trend in inflation could be affected if the yen continued to appreciate excessively, the Wall Street Journal reported on Tuesday.

"If excessive appreciation continues, that could affect not just actual inflation, but even the trend in inflation through its impact on business confidence, business activity, and even through inflation expectations," the newspaper cited Mr Kuroda as saying in an interview conducted at the weekend.

Mr Kuroda also told the paper that the BOJ was not targeting currencies but that he would continue to monitor their movements.

Mr Kuroda also said the BOJ could "technically and theoretically" lower interest rates at least to minus 0.4 per cent, and reiterated the central bank would not hesitate to ease further if needed to meet its 2 per cent inflation target, according to the Wall Street Journal.

REUTERS