BOJ’s Kataoka: Important for BOJ to act pre-emptively when economic, price risks heightening

Dhwani Mehta FXStreet

Bank of Japan (BOJ) monetary policy board member Kataoka is on the wires now, via Reuters, making some comments on the monetary policy.

Key Headlines:

Important for BOJ to act pre-emptively when economic, price risks heightening.

I believe BOJ must strengthen monetary easing given there is gap between its price target and actual inflation moves.

By cutting short-term rate target, BOJ can change shape of yield curve to one that is more accommodative.

The timing of the global economic recovery is being delayed, any recovery likely to be moderate.

Inflation may come under downward pressure from roex moves as other central banks turn more dovish on monetary policy.

The Japanese currency witnessed some fresh selling on the above comments, driving USD/JPY back above the 106 handle.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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