- private consumption has been resilient
- sales tax hike reduces real household income so BOJ must watch it impact on consumption
- BOJ to watch geopolitical risks like Ukraine and Middle East
- global financial regulation must be created in a way that does not excessively hamper private sector banking activity
- premature for BOJ to discuss QQ3 exit strategy
- BOJ has experience in exit strategy from 2006 and already has various means to withdraw liquidity. How that is used will depend on economic and price conditions at the time
- will not be able to use same exit strategy as previously as its balance sheet is larger and debt duration is longer
- doesn’t see an imbalance in Japan’s asset markets
BOJ dep gov on the wires but not with anything of note
USDJPY still clunking along the bottom at 101.41 as Nikkei goes nowhere fast, or indeed does EURUSD for the moment stuck around 1.3465
