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27 Mar 2015
New BOJ member Harada takes office today - Nomura
FXStreet (Bali) - New BOJ board member, Yutaka Harada, officially takes office today, with his stance not very different from Governor Kuroda and the BOJ leadership, notes Yujiro Goto, FX Strategist at Nomura.
Key Quotes
New BOJ board member, Yutaka Harada, officially takes office today and makes his first speech as a board member
In terms of the necessity for near term easing, Mr Harada’s stance is not very different from Governor Kuroda and the BOJ leadership
Even though Mr Harada does not judge that additional easing is imminent, he views that monetary easing has a more positive impact than some BOJ board members, who emphasise the side effects of easing.
His view on JPY weakness is also neutral to slightly positive, as he said a weaker JPY helps exporters and hurts importers’ profits, while JPY weakness is likely to be positive as long as employment conditions improve in the Japanese economy as a whole
During the Q&A session, he was challenged about his previous comments that full employment is around 2.5%
In terms of policy options, while Mr Harada repeated the BOJ could purchase more JGBs, and said there may be a limit on purchasing ETFs and REITs
As he said monetary easing would not be imminent, we do not expect him to propose proactively further easing in the near future, but he is likely to vote with Governor Kuroda when Governor Kuroda proposes further easing
Key Quotes
New BOJ board member, Yutaka Harada, officially takes office today and makes his first speech as a board member
In terms of the necessity for near term easing, Mr Harada’s stance is not very different from Governor Kuroda and the BOJ leadership
Even though Mr Harada does not judge that additional easing is imminent, he views that monetary easing has a more positive impact than some BOJ board members, who emphasise the side effects of easing.
His view on JPY weakness is also neutral to slightly positive, as he said a weaker JPY helps exporters and hurts importers’ profits, while JPY weakness is likely to be positive as long as employment conditions improve in the Japanese economy as a whole
During the Q&A session, he was challenged about his previous comments that full employment is around 2.5%
In terms of policy options, while Mr Harada repeated the BOJ could purchase more JGBs, and said there may be a limit on purchasing ETFs and REITs
As he said monetary easing would not be imminent, we do not expect him to propose proactively further easing in the near future, but he is likely to vote with Governor Kuroda when Governor Kuroda proposes further easing