The yen is at the highest levels since the spring. Is the period of endaka or yen strength ending? Certainly, there is a need to have a weaker yen with Japan again recession bound and corporations hurting with their export sales. The Japanese economy is going in a different direction for the US so there is a natural currency weakness. Monetary policy seems to be getting another jolt to be more accommodating. There seems to be an accord between the government and BOJ that they want to get serious about easing. There is a statement that they will "work together". Japan needs to get Swiss serious.
There also is a higher expectation that any change in the guard at the BOJ will be more willing to raise inflation targets. The potential new LDP prime minister, Shinzo Abe, have been calling for a inflation target between 2-3 percent. Abe has called for unlimited accommodation from the BOJ with a zero interest rate. He would like to see an end of deflation and a weaker yen. Parliament is likely to be dissolved tomorrow which means an election in the next month.
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