BOJ might delay expanding its monetary stimulus
The Bank of Japan might delay expanding its monetary stimulus if market turbulence generated by the UK’s recent vote to abandon the European Union, appears to be temporary, as an ex-major bank executive Kazuo Momma told on Monday.
However, Japan boasts the right to intervene in the financial markets in order to stem sharp yen ascends based on a shared understanding among G20 and G7 nations that excessive currency moves aren’t desirable.
Kazuo Momma is assured that it wouldn’t be easy for the BOJ to conduct intervention in the FX market. Furthermore, Japan might require persuading skeptics of yen-selling action such as the USA.
By the way, there isn’t a shared understanding among G20 and G7 nations that if required, countries can step into the FX market. Momma, told this following his insight into G7 talks on currency as well as economic policies.
Japan’s government has recently threatened to get down to intervention in case of another excessive surge of the Japanese yen.