Just out on reuters. Eamonn gave the heads up that he was talking earlier
- important for govt to pursue fiscal discipline
- if BOJ’s QE is seen as financing debt then this couls lead to rise in yields
- BOJ’s JGB purchases are putting downward pressure on yields by lowering risk premiums
- epxects consumer prices to rise and reach inflation target as economic growth exceeed potential
- biggest risk to Japan is overseas economy
- need to monitor whether China can achieve soft landing
- BOJ’s QE is working well so far to end deflation
- have to monitoe impact of monetary policy on emerging markets
Comments making little impact at present
USDJPY rallied a little to 97.93 but currently 97.86
