Kuroda says Bank of Japan will adjust bond purchase operations as needed

(Source: Reuters)

Bank of Japan governor Haruhiko Kuroda has said that Japan has not yet achieved strong and sustainable growth and that the Bank of Japan will adjust bond purchase operations as needed.

Following large swings in Japanese government bonds, he said that it was possible that the bond market is still looking for equilibrium. He said that he didn't expect yields to jump a lot, but stressed that there is a need to avoid excessive volatility.

The governor said that the impact of Yen weakness has had some time lag on exports. He noted that are real interest rates are probably falling, and that yields in the US and Japan are unlikely to move in the same manner.