• Will carefully watch market moves, including FX, and their impact on economy
• Weak yen is positive for exports but weighs on household incomes, smaller firms’ earnings through rising import costs
• Important for Japan to maintain market trust in its fiscal policy by laying out roadmap for medium-, long-term fiscal reform
• Efforts to restore Japan’s fiscal health very important for Japan to achieve sustainable economic growth
• Japan megabanks have sharply reduced JGB holdings, while regional banks haven’t shifted fund allocations that much yet
• Very natural for China to cut rates given slowdown in inflation
• Good chance China’s economy to grow above 7% this year and next, though likely to slow in long-term prespective