BOJ’s Kuroda Says FX Rate Can Affect Inflation Rate

The video discusses the impact of exchange rates on inflation forecasts, emphasizing that while short-term fluctuations can affect inflation, the forecast is primarily based on labor market improvements and output gap. The central bank is confident in achieving a 2% inflation target by fiscal 2018, assuming stable exchange rates. The current monetary policy remains accommodative, with potential adjustments based on economic conditions.

What assumptions are made regarding exchange rates in the inflation forecast?

What monetary policy stance is suggested at the end of the text?