Dovish BOJ member suggests no imminent easing – Nomura

By FXStreet FXStreet (Guatemala) – BOJ board member Yutaka Harada, who joined the board March this year, gave his first speech since his inauguration press conference.

Key Quotes:

“In March, Mr Harada said the Japanese economy had not reached full employment, even at a 3.5% unemployment rate, suggesting his dovish stance among board members.

Mr Harada’s stance likely remains slightly more dovish than the BOJ consensus.

Mr Harada appears to believe in the efficacy of QQE programme.

At the same time, Mr Harada stated that there is no need for additional easing now as the impact of the oil price drop on prices will disappear eventually.

The latest international investment flows data show dip-buying demand for USD/JPY remains strong from Japanese investors, while BOJ policy is unlikely to be a catalyst of JPY weakness in the near future.

As Fed lift-off approaches, USD/JPY is likely to trade resiliently, testing 125 by year-end.”
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Source:: FX Street