Bank of Japan Gov. Haruhiko Kuroda said he supports last week’s government intervention in the currency markets, and said it creates an appropriate policy mix together with the central bank’s ongoing monetary easing.
"The intervention was conducted by the finance minister’s decision as a necessary means to deal with excessive moves and I think it was appropriate,” Kuroda said Monday in his first public remarks since surprise actions were taken Thursday to prop up the yen. "The intervention and monetary easing are complementary.”
The government’s action last week came almost directly after the BOJ’s ultralow rates stance fueled further yen weakening, triggering doubt over the authorities’ unified stance. Following the three-day weekend, Kuroda and Finance Minister Shunichi Suzuki emphasized their stances weren’t working against each other.