Japan finance minister Suzuki:
Important to keep proper debt management through close dialogue with
marketsReduction in BOJ’s
JGB purchases would increase need for financial institutions to buy
JGBs, raising importance of dialogue with marketsCorrection in yen’s
weakness could push down import prices, tame consumer pricesNeed conviction that
Japan won’t go back to deflation before announcing complete exit
from deflation
Earlier:
Japan finance minister Suzuki closely watching stock prices, FX movements
Also:
Japan chief cabinet secretary Hayashi says equity prices are determined in the market
I’m sure Japanese authorities were not expecting such a meltdown in their stock markets. Sure, they accepted a higher yen would sap some of the strength but it appears they are getting more than they bargained for. They are scrambling to restore confidence.
That comment from Suzuki:
Need conviction that Japan won’t go back to deflation before announcing complete exit from deflation
Sounds to me like an assurance that rate hikes are over for now. I’m sure they are anyway, but Suzuki sounding a wee bit despearete here.
Mind the gaps
This article was written by Eamonn Sheridan at www.forexlive.com.
