Bank of Japan Governor Ueda comments crossing again:
- Negative rate and bother tools under BOJ’s massive stimulus had
boosted demand by pushing down real interest rates, but had
side-effects too such as on JGB market function -
Preliminary wage negotiation outcome tends to be revised down but
even so, we thought final outcome would be fairly strong number
-
Consumption was showing some weakness but we were able to confirm
strength in capex, when asked why boj decided to end negative rates
in March not April - We know some small
firms might struggle to hike wages, but overall, small, midsized
firms’ profits are improving - As we end our
massive stimulus, we will likely gradually shrink our balance sheet,
and at some point reduce jgb purchases - At present, we have
no clear idea on timing of reducing JGB buying, scaling back size of
balance sheet - We will take plenty of time examining how to reduce BOJ’s ETF holdings
-
In event of reducing BOJ’s ETF etf holdings, BOJ will come up with
guidelines taking into account market developments at the time - In selling BOJ’s ETF
holdings, we will do so in a way that minimises losses on BOJ,
disruptions in markets
Meanwhile, Japan Chief Cabinet Secretary Hayashi:
- Closely monitoring
fx moves with urgency -
Important for currencies to move in stable manner, movement
reflecting fundamentals -
Closely watching the impact on Japanese and global economy after the
Federal Reserve decision
This article was written by Eamonn Sheridan at www.forexlive.com. Source