Dep gov on reuters

  • BOJ ready to act with eye on downside

More to follow but USDJPY higher at 98.25

  • economy and prices can temporarily undershoot or overshoot so need to look at long term path
  • if BOJ were to increase asset purchases they would prefer to buy JGBs rather than riskier assets
  • stock falls and yen rise are temporary and have been driven by external rather than domestic factors
  • BOJ ready to offer huge amounts of liquidity to markets in the event of a sudden shock

That last one won’t please the BIS

USDJPY still at 98.27 after jumping up from 97.95