“We don’t think it will go below 1%,” Kuroda said in the article. “It will stay around 1.25% for several months before starting to accelerate toward 2.0%.”

The governor also remains bullish on the Japanese economy, but the BOJ is ready to step in with further easing if the recovery begins to falter.

Year-to-date, the iShares MSCI Japan ETF (NYSEArca: EWJ) has dipped 7.1%. Meanwhile, hedged-equity ETFs have been underperforming this year due to the strengthen in the yen currency. The WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) declined 8.2% and db X-trackers MSCI Japan Hedged Equity Fund (NYSEArca: DBJP) fell 10.5% year-to-date. [Japan ETFs Could Strengthen As Institutional Money Pours Into Equities]

CurrencyShares Japanese Yen Trust

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