BoJ to Intervene? - BBH
Analysts at Brown Brothers Harriman explained that while the BOJ could
intervene, we continue to attribute a low risk in the run-up to the G7
meeting toward the end of the month.
"Japan's proposition looks something like this: Japan will offer fresh fiscal stimulus in exchange for G7 approval for it to enforce the agreement that excessive volatility in the market-driven exchange rates is counterproductive."
"The dismal PMI readings (the composite for April, 48.9 is a two-year low. The recent earthquake requires government rebuilding efforts, and Abe appears to be looking for a face-saving way to postpone the sales tax hike (from 8% to 10%) that is to be implemented April 1, 2017."