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19 Feb 2013
Forex Flash: BOJ minutes saw a 2% inflation target debate - Societe Generale
Kit Juckes, Global Head of Currency Strategy at Societe Generale comments that the overnight BOJ Minutes saw a debate about the 2% inflation target that has now been adopted.
He notes that some members opposed the target on the reasonable grounds that since inflation hasn't been that high for over twenty years, there was a risk they might not achieve it now. With a new Governor and two new Deputy Governors set to be appointed soon (the Governor next week), he feels that these minutes feel somewhat out of date, and the debate odd. He writes, “BOJ policy is to throw the kitchen sink at the problem of persistent deflation. From the narrow perspective of an FX strategist, that mans doing all they can to weaken the yen without saying so too loudly.”
He notes that some members opposed the target on the reasonable grounds that since inflation hasn't been that high for over twenty years, there was a risk they might not achieve it now. With a new Governor and two new Deputy Governors set to be appointed soon (the Governor next week), he feels that these minutes feel somewhat out of date, and the debate odd. He writes, “BOJ policy is to throw the kitchen sink at the problem of persistent deflation. From the narrow perspective of an FX strategist, that mans doing all they can to weaken the yen without saying so too loudly.”