Update: Looks like we may have a lost in translation moment here, because shortly after the Reuters report (which recall is first and foremost an FX dealer and so loves USDJPY volatility), bloomberg reports that the “MOF draft statement cited by Reuters simply affirms that govt still plans a package.” Hardly the dramatic “pressuring” of the BOJ Reuters would have its FX trading clients believe.
As Bloomberg paraphrases the Reuters piece, the BOJ is considering specific steps for expanding monetary stimulus Friday to address signs of weakness in inflation, Reuters reports, citing people familiar.
BOJ would aim to maximize boost of its measures by timing its action with the govt’s big spending package: sources Ministry of Finance lobbying hard for BOJ to ease further and has prepared a statement it’ll publish if BOJ eases ‘We welcome the BOJ’s decision and will deploy all necessary policy steps including a scheduled big stimulus package,’ says a draft statement seen by Reuters Bloomberg adds the following:
This post was published at Zero Hedge on Jul 28, 2016.
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