BOJ will ease until CPI is stable at 2%

The Bank of Japan Governor Kuroda stepped in with comments on Friday, reiterating that the regulator will continue QE until the inflation stabilizes at 2%. He has also noted that the bank may extend policy if needed. 

Kuroda pointed to a slowdown in exports and imports, but has also mentioned higher consumer spending in Q3. In his view, inflation will reach 2% when the lower oil impact fades. 

Meanwhile, analysts at Credit Agricole expect the Bank of Japan to announce additional QE on the October 30 meeting strating from January 2016. According to their forecast, the news could lift USD/JPY up by five big figures in a long term. Analysts revised their year-end forecast from 123 to 125 previously. 

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