BoJ Governor Haruhiko Kuroda told the parliament today, “I don’t think the BOJ’s monetary policy was the factor behind a rapid yen weakening. The recent yen weakening may have been driven by an abnormal situation where oil prices topped $130 per barrel.”

He also said that the rapid depreciation of Yen was “undesirable”. But the situation was improving with Dollar easing back to around 127 Yen.

Meanwhile, Kuroda also repeated the pledge to maintain powerful monetary easing to help the economy from recovering.

BoJ Governor Haruhiko Kuroda told the parliament today that core inflation (all items excluding fresh food) is “likely to remain around 2% for about 12 months”, unless energy prices drop sharply.

However, he emphasized that “prices won’t rise sustainably, stably unless accompanied by wage hikes.” That’s seen as in indication that recent rise in inflation is not enough to lead to exit of the ultra-loose monetary policy.

Also from Japan, Tokyo CPI core was unchanged at 1.9% yoy in May, below expectation of 2.0% yoy.

BoJ Governor Haruhiko Kuroda reiterated to the parliament today that ultra-loose monetary policy must be maintained for now. Consumer inflation is still expected to slow next year and beyond, after spiking above 2% target this year, only because of surging energy prices.

Nevertheless, Kuroda also noted when the right time comes, BoJ will plan an exit from easy policy. “The key would be how to raise interest rates and scale back the BOJ’s expanded balance sheet,” he said. “The BOJ can combine various means and ensure markets remain stable in executing a smooth exit from easy policy. I must add, however, that it won’t be easy,” he said.

Regarding exchange rate depreciation, Kuroda said Fed’s rate hike may not necessarily weaken the Yen, if they also shoot down stock prices.

Prime Minister Fumio Kishida said in the same parliament session, “sharp yen moves are undesirable. While a weak yen benefits exports and firms with overseas assets, it hurts households and some businesses via higher costs.”