A former state banker turned critic of Prime Minister Shinzo Abe’s pro-growth policies, Akira Kondoh told Reuters late-Tuesday, the Bank of Japan’s (BOJ) focus on keeping the Yen weak has made the Japanese executives complacent and hurt corporate competitiveness.
“Abenomics only gave people the impression the government was doing something ... but many things remain undelivered.”
The policies have not improved the competitiveness of Japanese companies or their market value.
The impact on stock prices was questionable.
“By weakening the yen with lower interest rates, the BOJ may have made life too comfortable for business executives.”
“That made Japanese companies less competitive.”
“The BOJ should not allow yen moves to guide policy.”
“It shouldn’t ease even if the U.S. Federal Reserve cuts interest rates.”
“If the yen rises too much, Japanese authorities can intervene in the currency market,” rather than ease monetary policy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.