Bank of Japan Governor Ueda, headlines via Reuters:
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When BOJ talks about side-effects of YCC, it includes risk of
triggering volatility in markets including for FX - Desirable for FX to
move stably reflecting fundamentals - If YCC heightens FX
volatility, that is seen as among side-effects of our policy, when
asked BOJ views sharp yen falls as side-effect of YCC - Recent high
inflation driven by rising import prices and domestic factors, but
latter still somewhat weak - Hope to see overall
inflation slow as cost-push factors dissipate but in medium- to
long-run, want to see inflation gradually accelerate
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Well aware underlying price rises hurting households, companies but
don’t expect this to last very long - When looking at
trend inflation there is still some distance toward 2%, which is why
we are continuing with massive monetary easing - We are continuing to
buy huge amounts of govt bonds via market operations so 10-year JGB
yield does not too much above 1%
I’m not reading anything here from Bank of Japan Governor Ueda to indicate any reduction in easy policy is imminent.
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More market and FX volatility?
This article was written by Eamonn Sheridan at www.forexlive.com. Source