Earlier today we had Kuroda’s speech on a television program. He said that his personality is cautiously optimistic, but there is nothing new in his speech, key points below:
- Fiscal policy results don’t always turn out as expected
- Many economists don’t think financial markets always right
- Wages will rise if prices rise
- Deflationary mindset deeply rooted in Japan
- FX, stock markets sometimes move too much
- Results of monetary policy don’t always turn out as expected
JPY remains elevated against the USD, but greenback is one of the weakest among G10 right now, yet the volatility remian low for a time being.
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