Further comments by BOJ deputy governor, Masayoshi Amamiya
- BOJ has to be more careful about weighing cost and benefit of further easing
- This is because BOJ has already eased a lot up until now
- But that does not mean next easing step will be limited or small
The disadvantage that the BOJ is facing in the race to the bottom is that they've already used up a majority of their resources to get to where they are now. Hence, other central banks have more capacity to ease while they stand by and watch in the mean time.
And that will be a real problem to them if the yen gains further strength on the lack of policy action while the global economy continues to slow down even more.
