Kuroda hints at no stimulus from BOJ on October 30th

Speaking on the sidelines of IMF meeting in Lima, Bank of Japan (BOJ) Governor Haruhiko Kuroda hinted that there won't be further stimulus from Bank of Japan (BOJ) on October 30^th, when policymakers are scheduled to announce policy decision.

However, about half of analysts expect the BoJ to act on the day, when it's due to release new forecasts on inflation and the economy. According to some economists, a further move is inevitable given Japan's weak growth and persistent deflationary threat.

• But Mr. Kuroda is confident enough over current policy. According to him, current policy is working and making intended impact on economy and financial markets. Economy is recovering and underlying inflation dynamics is strengthening, even if headline is hovering around zero.

• According to Mr. Kuroda, unless oil price dips further, its negative impact on the economy is likely to fade and then 1% inflation is quite likely and with tight Japanese labour market 2% inflation is achievable.

• Mr. Kuroda clearly shrugged off negative interest rates.

 BOJ is hesitating to take further stimulus as political impact of such could be more serious. It could intensify the currency war and so called race to bottom.

Yen is currently trading at 120.1 against Dollar and Nikkei is trading around 18325, flat for the day.