26 May 2015
Yen weakness on IMF views on Abenomics - BTMU
FXStreet (Barcelona) - Lee Hardman, currency analyst at Bank of Tokyo-Mitsubishi UFJ, Ltd noted that Yen weakness has extended following the announcement late last week from the IMF calling for the reinforcement of all three arrows of Abenomics.
Key Quotes:
"The IMF warned that the risks to Japan’s economy “are tilted to the downside”. The IMF is not as convinced like the BoJ that a “virtuous cycle” towards higher inflation resulting from rising incomes has materialised."
"The IMF has called specifically on the BoJ to implement “additional monetary easing while strengthening its effectiveness through more explicit guidance…to enhance inflation dynamics”."
"Additional government bond purchases of longer maturities “would further lower the long end of the yield curve and strengthen the commitment to low interest rates for as long as it takes”."
Key Quotes:
"The IMF warned that the risks to Japan’s economy “are tilted to the downside”. The IMF is not as convinced like the BoJ that a “virtuous cycle” towards higher inflation resulting from rising incomes has materialised."
"The IMF has called specifically on the BoJ to implement “additional monetary easing while strengthening its effectiveness through more explicit guidance…to enhance inflation dynamics”."
"Additional government bond purchases of longer maturities “would further lower the long end of the yield curve and strengthen the commitment to low interest rates for as long as it takes”."