Bank of Japan Minutes June meeting: Economy showing signs of bottoming out


The Bank of Japan minutes of the June interest rate meeting have been released.

A few members said that the BoJ's role was to provide liquidity and that it was important to cooperate with the government while clarifying their respective roles, as Reuters reports:
 

BoJ June meeting minutes

  • Members agreed tension in global financial markets had abated due to aggressive fiscal and monetary policies.
  • Members shared view markets continued to be nervous due to high uncertainty regarding domestic and overseas economies.
  • A few members said the impact of COVID-19 on the global economy would become prolonged without effective vaccines and medicines.
  • Some members were of view Japan's economy was showing signs of bottoming out recently.
  • Some members said must pay attention to second-round effects of COVID-19 such as how households' and firms' mindset, the behaviour would change long-term.
  • Many members expressed recognition that economic activity could be significantly constrained again if the second wave of COVID-19 occurred.
  •  A  few members said there was risk Japan might fall into deflation again if number of bankruptcies, business discontinuations increased.
  • One member said delay in economic recovery could worsen firms' financial conditions, heighten concern over financial system risks
  • Many members shared view that for time being, it was important to examine effect of series of easing measures taken so far.
  • One member said when policy emphasis shifts from crisis-fighting to promoting economic recovery, the stimulus effects of current monetary policy should be re-examined.
  • Some members said with impact of covid-19 likely to last for prolonged period, there was chance problems for firms would shift from liquidity to solvency.
  • A few members said boj's role was to provide liquidity, important for boj to cooperate with govt while clarifying their respective roles.

Market implications 

The Bank of Japan meetings of late have been non-events in terms of the yen while existing policy measures have been unchanged.

USD/JPY remains in a fairly tight range despite global economic uncertainties and various geopolitical tensions which have weighed on regions equities.

there are limited clear catalysts for any idiosyncratic moves in the pair this week bar what developments we may see in the IS dollar and equities pertaining to the coronavirus backdrop.

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Recovery from 50-DMA has bumpy road ahead

EUR/USD attacks upper end of immediate trading range following Monday’s corrective bounce. Previous resistance line, bearish MACD signals test the recovery moves. Three-week-old resistance line adds to the upside filters.

EUR/USD News

GBP/USD looks to UK jobs, Brexit to defend 1.4100

GBP/USD remains sidelined above 1.4100, recently taking offers around the intraday low of 1.4105 by the press time of the early Asian session on Tuesday. The cable dropped to the lowest since mid-May before bouncing off 1.4070 the previous day.

GBP/USD News

GBP/USD looks to UK jobs, Brexit to defend 1.4100

GBP/USD remains sidelined above 1.4100, recently taking offers around the intraday low of 1.4105 by the press time of the early Asian session on Tuesday. The cable dropped to the lowest since mid-May before bouncing off 1.4070 the previous day.

GBP/USD News

Elon Musk energizes BTC bullish thesis, with ETH and XRP range-bound

BTC streaks towards imposing resistance between $41,581/$44,622. ETH rebounds from symmetrical triangle's lower trend line. XRP has notably decoupled from BTC, no meaningful direction since the June 8 low.

Read more

US Dollar Index: Awaiting FOMC economic estimates

The Dollar’s initial weaker reaction to Thursday’s May inflation report, (it continued to rise to 5% annually from the 4.2% seen in April and the CORE reading at 3.8% was close to a 30-year high), which sent the USDIndex to test the week’s low zone at 89.90, was short – lived

Read more

Forex MAJORS

Cryptocurrencies

Signatures