Bank of Japan (BOJ) new board member Toyoaki Nakamura, said in his welcome speech on Wednesday, its hard for BOJ to simultaneously take steps to achieve price goal and measures to combat the pandemic.
“BOJ has coped well with the impact from the virus fallout so far.”
“Need to watch the benefits, side effects of policy.”
“BOJ has been a pioneer of policy tools.”
“Doesn't think that BOJ is financing debt with its operations.”
“Must respond early depending on economic conditions, with an eye on COVID-19 infection numbers.”
“For business executives, the desirable environment is for the economy to see gradual inflation of around 2%.”
“Japan's economy is now seeing demand evaporate.”
“No major disruption seen in Japan’s financial system as BOJ has taken pre-emptive policy steps.”
“Japan must return to the world where there is no negative rate, otherwise it won't see inflation pick up sustainably.”
“I am hoping Japan’s economy recovers from the latter half of this year but worried about rising COVID-19 infections in some parts of the world.”
USD/JPY hovers around 107.50
USD/JPY flirts with daily low of 107.47, tracking the losses in the US dollar and S&P 500 futures.
The greenback continues to trade on the back foot on the first trading day of the third quarter, as the bulls remain jittery ahead of the key US economic releases due later today.
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