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  • BOJ’s ‘Damage Control’ Leaves Traders Guessing About True Aims

    From bnnbloomberg.ca

    Bank of Japan Governor Kazuo Ueda had a clear message last week — the weak yen was a risk and rates were likely to keep rising. The reaction from traders to Ueda’s apparent hawkish turn was severe. The currency surged more than 3% against the dollar, and Japanese stocks had their biggest rout since 1987. In response, his deputy Shinichi Uchida delivered a fresh message this week — rate hikes were off the table so long as markets were in turmoil. That had the desired response of paring some of the yen’s sharp gains and helping to calm markets. But it also left investors puzzling over how much faith to put in ... (full story)

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By right, Uchida should not have made the statement. Stocks were too high and needed correction. Whereas the Yen is just too undervalued .
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BOJ governor and his assistant made contrasting statements. That was a crazy move for any central bank officials to do. They are confusing the stocks and fx markets, which in turn can be damaging to their economy as investors are confused about their monetary policy
Lol @ "damage control" who writes this stuff? They just don't want the currency to devalue or appreciate too fast. They've said this MULTIPLE times. They don't care about the price but the speed in how they move. Why are we making this seem like this hasn't been reiterated by every BOJ member since forever.
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Quoting Momofrmnyc
Lol @ "damage control" who writes this stuff? They just don't want the currency to devalue or appreciate too fast. They've said this MULTIPLE times. They don't care about the price but the speed in how they move. Why are we making this seem like this hasn't been reiterated by every BOJ member since forever.
^ Truth, the messaging was consistent. Though I am sure there is certainly SOME desire not to have the currency drug through the mud on your watch....kind of like saying "I don't care if my team loses every game, as long as those games are close"...financial players no doubt wish their economies, and currencies, would perform well while in office
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  • Story Stats
  • Posted: Aug 9, 2024 4:27am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 4  /  Views: 3,894

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