Details from his tv appearance
- Currency level moves due to various factors
- Desirable that currency reflects economic fundamentals
- Doesn’t see current yen weakness as a minus for economy
- Yen level is reflecting fundamentals
That’s rocked USD/JPY back above 107.00
- Q2 economy contracted due to tax hike impact but what is important is Q3 rebound and how economy performs after
- True we saw some weak economic data but expect Jul-Sep GDP to turn positive
- Big rise in Q1 GDP the biggest factor in Q2 fall
- Employment and income situation is improving
- Hard to address doubt about fiscal situation it is arises
- Will adjust policy if price target is at risk
- If external or other factors threaten economic recovery there are fiscal and monetary policy steps that can be deployed
- Sees no need to change monetary policy stance at the moment
That’s dropped us through 107 again
A better comment from Rtrs says that “we are making steady progress in meeting price target now, so seen no need for policy adjustment.
- Desirable for price rises to be driven by positive cycle in economy
Basically he’s happy with the exchange rate levels but no further policy pumping is needed. The market is buoyed by the FX comments but looks to be disappointed on that future stimulus is off the table unless the economy really goes south. With that rhetoric it’s probably nailed on for the tax hike.
And it’s all over.
