- Should not look at prices alone in making policy
- BOJ not committing itself to future policy steps
- New operation has had some effect on money market
- New price definition likely to affect interest rates
- December tankan in line with BOJ’s view on economy
- Increase in BOJ fund supply has limited effect on boosting economy
- Should look not just at prices but any imbalance in economy in making policy
USD/JPY marginally firmer in early European trading, presently at 89.80. Once again we’ve recently seen Japanese exporter hedging around 90.00 help limit the pairing’s gains.
