BOJ governor still in Q&A at press conference 16 June

  • BOJ been able to keep rates steady even as US rates rose

Have they had any choice?

  • hard to say how any rise of US yields influences JGBs
  • BOJ exit talk growing due to what's happening in US and EZ

EZ ? Plenty of chatter/rumour but no action as yet.

  • BOJ will continue to communicate
  • can't show various scenarios when not sure on future
  • not desirable to cause confusion by premature exit talk
  • Fed's exit isn't what they indicated at first
  • hitting 2% BOJ target more important than easing side-effect
  • BOJ can hit 2% target

Kuroda trying hard to defend a policy that hasn't really many tools left to boost inflation to target areas.

Presser now finished.

USDJPY retreating further to 111.16 but demand expected into 111.00 and 110.80. Offers/res 111.50-80