The Japanese economy remains on a course to stabilize its inflation. For the last few months, the Bank of Japan (BOJ) has been repeating its plan to continue QQE until the 2% inflation is stable and on Thursday, BOJ Kuroda reiterated this intention.

Kuroda pointed to evidence that the easing was having intended effect and that virtuous economic cycle is working. Consumer spending rose in July-Sept vs April-June and Japan’s exports and imports are slowing although consumer spending ticked higher in Q3. He assured markets that inflation as measured by the consumer price index would reach 2% once the impact of oil prices retreats and added that the BOJ will review the situation as required and adjust policy when needed.

At a press conference on October 7th, Kuroda said that “The trend of consumer rises is rising steadily,” and repeated the BO’s pledge to increase base money at an annual pace of 80 trillion yen ($700 billion) through aggressive purchases of assets such as government bonds.

No Change

He continued by saying that, “There is absolutely no change to our stance that we will steadily implement quantitative and qualitative easing to achieve the 2% inflation target at the earliest possible time.” Kuroda just didn’t say when.

According to Takuji Aida, chief economist at Societe Generale Securities, “The BOJ will revise down its forecasts and ease again on Oct. 30,” and “Kuroda has to wait until then to revise down his scenario.”

USD/JPY is a tad lower Friday at 118.95 on general USD selling.