- Central banks need to communicate with markets to reduce potential side effects of monetary policy
- Cannot be sanguine about JBG market functioning
- BOJ has found episodes showing deterioration in JGB and money markets
- Indicators show JGB market activity has not been affected significantly by QE
- Foreign investors have played role in driving yen rates into negative, as dollar funding rates have risen
- Will continue to look for signs of overheating in financial markets
- Need to be mindful of risks monetary policy triggers ‘search for yield’ investing
Like Noyer, Nakaso is speaking at the Paris EUROPLACE International Financial Forum in Tokyo.
