BOJ’s Wakatabe: Powerful easing steps exerting effect on economy, markets

In a scheduled speech on Wednesday, the Bank of Japan (BOJ) Deputy Governor Masazumi Wakatabe said that the easy monetary policy is having its positive effects on the economy and the market.

Additional comments

“Japan's economy in very severe state but showing some signs of pickup.”

“Japan's economy likely to gradually improve in latter half of this year.”

“Japan's economic activity may be restrained sharply if strict health measures are re-imposed to contain pandemic.”

“Economy may come under further pressure if companies' problems shift from liquidity to solvency issues.”

“BOJ must guard against risk households', companies' growth expectations fall, make them more cautious about spending.”

“BOJ will take additional easing steps without hesitation if needed with an eye on impact of pandemic on economy, prices for time being.”

Market reaction

USD/JPY extends the bounce to regain the 106 barrier on the above comments. The spot adds 0.08% on a daily basis to now trade at 106.02.