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