Ex-BOJ's Momma: Countries can intervene in FX if necessary

27 June 2016, 05:58
Sherif Hasan

Kazuo Momma (was the BOJ's executive director overseeing international affairs, until May)

  • It is shared G7, G20 understanding that countries can take various steps, including fx intervention, if necessary
  • Cannot set in advance specific pace of FX moves that justify intervention
  • Don't see need for BOJ to hold emergency meeting today or tomorrow, though it can always hold one if necessary
  • Don't see strong need for BOJ to expand stimulus immediately
  • Expanding risky asset purchases is the easier option if BOJ were to ease policy further
  • Expanding JGB buying not easy, deepening negative rates would meet strong resistance among some BOJ board members
  • BOJ shouldn't fret about monthly price moves and should focus on whether underlying trend inflation is improving long-term
Momma speaking in an interview with Reuters
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