Govt can intervene in FX market if Yen moves are very unstable – BOJ’s Kiuchi

Additional headlines crossing the wires from BOJ’s lone dissenter, Takahide Kiuchi, here as under:

On monetary policy –

Continued easing won't have additional effects

BOJ should shift its policy focus to sustaining

financial system stability from price stability

Costs may outweigh merits if japan tries to stimulate economy with monetary policy alone

Negative rate policy to lower real interest rates

But negative rate policy has side-effects

Negative rates to make it hard for boj to buy jgbs
Too early to conclude pros and cons for economy of last month's decision to adopt negative rates

It is becoming difficult to push down real interest
rates as inflation expectations falling globally

Personally think it's becoming increasingly difficult to find further effective steps to achieve 2 pct inflation target

On the domestic currency -

Negative rate policy not aimed at weakening yen

There may be room to strengthen dollar swap agreement among central banks

It’s uncertain whether trying to weaken yen further would be good for japan's economy

Government can intervene in FX market if Yen moves are very unstable, which means BOJ shouldn't buy foreign bonds to influence FX rates