Japan's central bank Governor Haruhiko Kuroda said Japan's financial system is stable and markets are improving on a decline in risk aversion and positive expectations on domestic policy.
Kuroda reiterated that the central bank is committed to achieving the 2% inflation target within two years and that some economic indicators are already showing that inflation is on the rise. The BOJ astounded world markets with a pledge to inject a huge flow of cash into the Japanese economy by buying government bonds and risk assets to end 15 years of deflation. However, some investors are concerned that the central bank's intervention could end up distorting the financial markets. The BOJ has promised to buy $76 billion in long-term government bonds a month, a figure that corresponds to 70% of new issues. The news galvanized markets as they rallied in recent days, which ended abruptly on news of weaker-than-expected economic data out of China.
http://www.japantoday.com/category/business/view/bojs-kuroda-says-japan-market-conditions-improving
