- BOJ will ease without hesitation if chance that economy may lose momentum for achieving price goal heightens
- Economy sustaining momentum for hitting BoJ’s price goal
- BoJ must pay more attention than before to heightening risks, particular focus in on the output gap
- If Oil prices continue to fall and clearly push down Japan’s inflation, that could impact inflation expectations
- No preconception on what policy decision will be made in October
- Investors risk aversion easing somewhat due to progress in US-China trade negotiations
- BoJ can combine, enhance tools which are rate cuts increase in asset buying and acceleration of base money
- Excessive fall in super-long yields could hurt consumer sentiment by lowering returns of pension, insurance funds
- Our policy is stimulating economy, but increased scrutiny is needed on cost of prolonged ultra low rate environment
- Overseas economic slowdown yet to affect Japan’s domestic demand
No hints on whether more QE is coming for October, which is what would have weakened JPY further on the current change in sentiment with China waiving some soybean tariffs.
Interesting line about scrutiny on ultra low rate environment. We are starting to see a move away from monetary policy towards fiscal policy. I think it is reasonable expect this to be the next driver in the FX markets now if conditions remain in an ultra low interest environment.