BOJ’s Nakamura says cannot directly control FX moves with monetary policy

  • It is desirable for FX to move in a way that reflects fundamentals
  • Sharp, one-sided fall in yen heightens uncertainty
  • Japan’s economy is not that strong yet
  • Need to look at data in deciding when to start tapering bond purchases
  • I am neutral on whether and when to taper bond buying
  • Raising rates at next week’s policy meeting would be too early

This is one of the more dovish takes on BOJ policy at the moment. There is a strong expectation that they will reduce bond purchases this month. But Nakamura is evidently not as supportive as he is claiming that the economy is still in a rather fragile state.

This article was written by Justin Low at Source