- POSTED: 14 Jun 2014 05:34
The yen slipped against the dollar and euro on Friday after Bank of Japan governor Haruhiko Kuroda called for the government to implement reforms to combat tepid growth.
WASHINGTON: The yen slipped against the dollar and euro on Friday after Bank of Japan governor Haruhiko Kuroda called for the government to implement reforms to combat tepid growth.
Meanwhile British central bank chief Mark Carney's hint at an earlier interest rate hike than markets expect pushed the pound higher.
The BoJ held monetary policy in place after a two-day meeting, as expected. But Kuroda's call underscored the frailty of the Japanese recovery and the need to do more to shore it up.
"The BoJ strongly expects that the government will implement the (reforms) policy, as it is important to improve labour supply and productivity," he said following the meeting.
His call came after Prime Minister Shinzo Abe said the government would cut the corporate tax rate, one of the world's highest.
"Japan's corporate tax will become growth-oriented... to help boost jobs and improve people's livelihoods," Abe said.
Bank of England governor Mark Carney suggested Thursday that its benchmark rate could be increased this year, rather than in 2015 as many analysts have predicted.
A rate rise "could happen sooner than markets currently expect," Carney said, given the strength of the country's economy.