"Japan's top currency diplomat" Masato Kanda
- Strong market interest in US rate cut timing, BOJ policy outlook, both of which could be used by speculators as excuse for volatile market moves
- Always communicating closely with financial authorities including BOJ, Fed
- Declines to comment on BOJ policy beyond saying it is among 'important events' when asked about ending negative interest rates
- Always carefully watching impact of central bank decision on financial markets; will continue to do so
- Important for currency exchange rates to move stably reflecting economic fundamentals
- Ultra-loose monetary policy helped pull economy out of deflationary state, but also had negative side-effects
- US economy stronger than expected but if tight monetary policy is prolonged, that could hurt domestic consumption, become risk to global growth
This is mild verbal intervention for Kanda, especially the " important for forex rates to move stably reflecting fundamentals" that is in the headline to the post. What is more broadly interesting to me is Kanda saying similar to what Bullard said yesterday: "US economy stronger than expected but if tight monetary policy is prolonged, that could hurt domestic consumption".
The timing is very curious, almost like Kanda was clued in to say this.
Masato Kanda
Japan's Finance Ministry's Vice Finance Minister for International Affairs Kanda. He is the guy who will instruct the BOJ to intervene, when he judges it necessary. Often referred to as Japan's 'top currency diplomat'.