Fed hikes won’t sway dollar unless pace much faster than forecast-BOJ’s Kuroda
2022.06.08 11:41
FILE PHOTO: Bank of Japan Governor Haruhiko Kuroda speaks at a news conference in Tokyo, Japan, December 19, 2019. REUTERS/Kim Kyung-Hoon/File Photo
TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said dollar moves may not be affected much by U.S. interest rate hikes unless the pace is much faster than expected, according to a recording of an online interview by the Financial Times aired on Wednesday.
The U.S. Federal Reserve has made “quite clear” how much it would like to raise interest rates, which has been priced in well by markets, Kuroda said in the interview recording.
“Unless the Fed raises interest rates must faster than, or more than what their forward guidance shows, the dollar rate may not be so much affected by (U.S.-Japanese) interest rate differentials,” he said.
Kuroda also said he does not expect China’s COVID-19 lockdowns to have a long-term impact on Chinese and global economic growth, with any fallout likely to be temporary.
