BOJ board member Morimoto:

  • Japan’s economy showing signs of positive cycle of output, income and spending
  • BOJ ready to take necessary policy adjustments, taking into account risks to the economy, prices, at the time
  • Says investors may continue to withdraw funds from EMs, which may keep global outlook uncertain
  • market trust in Japan’s fiscal health is key for BOJ easing to be effective
  • JGB yields may rise in a way deviating from economic fundamentals if trust in Japan’s finances is lost
  • Japan’s economic growth to keep exceeding potential despite impact of planned sales tax hike
  • Downward pressure on long-term rates will strengthen as BOJ continues its massive bond buying
  • Average duration of JGBs the BOJ buys should be in a range of 6 – 8 years
  • Global economy still fragile, pace of recovery seen is moderate

Comments crossing the newswires

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There isn’t anything much new here from Morimoto.

USD/JPY has had a tight range so far today, orderboard here.