BOJ's Tamura calls for review of monetary framework – Asahi

Early Friday morning in Asia, Japanese media Asahi quotes Bank of Japan Board Member Naoki Tamura as saying, “The Bank of Japan should conduct a review of its monetary policy framework and the feasibility of its 2% inflation target.”

The policymaker also added, “Whether the BOJ needs to tweak its (ultra-easy) monetary policy will depend on the outcome of the review."

Additional comments

Timing of review could come soon or somewhat later, which will depend on price, wage, economic outlook.

BOJ should consider 2% price target as flexible goal as that level may have been excessively high for Japan.

Market implications

Chatters surrounding the Bank of Japan’s (BOJ) monetary policy tightening allowed the USD/JPY to refresh the multi-month low the previous and are exerting downside pressure on the Yen pair of late.

Also read: USD/JPY Price Analysis: Plunges 200-pips after sellers stepped in eyeing the 200-DMA around 135.00