FXStreet (Mumbai) – In an interview that took place on Dec. 22 and published today by Bloomberg, Toyoo Gyohten, a former currency policy chief at Japan’s Finance Ministry, noted that the BOJ monetary policy is not the only thing on the economic agenda next year. Mr. Gyohten also added that the chances of further BOJ easing seem low in 2016.
Key Quotes:
“The Bank of Japan’s monetary policy isn’t the biggest item on the economic agenda next year.”
“The BOJ probably isn’t thinking about firing off a huge hit. What’s needed isn’t a further strengthening or expansion of the current quantitative easing.”
“The probability is low for additional BOJ easing,”
“Right now, the government and the BOJ have put emphasis on the bad influence of the weak yen on income redistribution. Their stance is that there’s no need for further stimulus.”
“The core of Abenomics in strengthening the overall economy is making a progress and won’t be derailed,”
“The issue for Japan is whether it can really show the path toward recovery and turn the corner next year on investment and consumption — Abenomics’ ultimate economic policy goal — or become a very disappointing case, even if such a probability isn’t big. The year 2016 will be crucial.”
(Market News Provided by FXstreet)