Bank of Japan Governor Ueda spoke on Saturday at the annual meting of the Japan Society of Monetary Economics. He said that there was “still a distance to go” before the BOJ exits its ultraloose monetary policy.
Ueda addressed that have been expressed that the BOJ’s huge balance sheet will make an exit from ultraloose policy difficult by exposing it to massive losses. Ueda said this is not a consideration for his conduct of policy.
- “The objective of the Bank’s monetary policy is achieving price stability, which is its mission as stipulated by law. Considerations of the Bank’s finances, etc. do not prevent it from implementing necessary policies,”
- “A central bank’s ability to conduct monetary policy is not impaired by a temporary decrease in its profits and capital, provided that it conducts appropriate monetary policy,”
USD/JPY is opening a touch firmer in very early Asia trade, circa 149.50. It closed late Friday around 149.35 or so.
None of these guys is overly concerned about their respective Bank’s profits or losses – its all OPM.
This article was written by Eamonn Sheridan at www.forexlive.com. Source