- It is desirable for FX to move in a way that reflects fundamentals
- Sharp, one-sided fall in yen heightens uncertainty
- Japan's economy is not that strong yet
- Need to look at data in deciding when to start tapering bond purchases
- I am neutral on whether and when to taper bond buying
- Raising rates at next week's policy meeting would be too early
This is one of the more dovish takes on BOJ policy at the moment. There is a strong expectation that they will reduce bond purchases this month. But Nakamura is evidently not as supportive as he is claiming that the economy is still in a rather fragile state.
