BoJ's Funo via Reuters
- Oct meeting will be very important meeting
- won't hesitate to ease further if risks materialise
- Tankan results in line with view economy is in moderate recovery
- US economy to continue growth ahead
- output gap is important barometer for price momentum
- long term interest rates moving in external factors
- pick-up in global economy delayed, no sign of it happening yet
- US-China trade negotiations will be key to pick-up in Global economy
Will the BoJ ease further at the October meeting or won't they? A key factor is going to be how much the JPY strengthens on negative risk tone. If we get more risk aversion and USDJPY moves back down to 100.00 then the BoJ may push the pedal on further easing. So, the lower USDJPY the greater the expectations of BoJ easing increase.
