BOJ’s Kuroda: Excessive yen strength reversed since QQE adoption

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Wednesday excessive yen strength has been reversed since the introduction of the bank’s massive stimulus program in 2013.

He also said the main transmission channel of the BOJ’s “quantitative and qualitative easing” (QQE) was to lower real interest rates by pushing down nominal interest rates and heightening inflation expectations.

“Real interest rates have fallen significantly” as inflation expectations heightened as a whole from a somewhat long-term perspective, he told parliament.

(Reporting by Leika Kihara and Stanley White; Editing by Chris Gallagher)