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Yen strength on BOJ Sato comments

USDJPY News by Newsroom on 21:59 June 01, 2016 EST

Bank of Japan Sato leaves some gloomy headlines on Thursday morning. The Yen appreciates accordingly taking on its traditional role of safe haven.

Here are some of Sato's comments:

- It's unnecessary to persist in hitting 2 pct inflation target at all costs
- We've learned that if inflation rises before incomes, consumer sentiment will be hit and it will hurt
- Negative rates could affect financial system stability, negative rates only meaningful for use for tapering.
- Monetary base expansion, negative rate combination not sustainable.
- Expanding monetary base and negative rates are contradictory, negative rates has effect of monetary tightening.
- Japan growth potential nearly zero, and mon pol has lag. Says asset purchases should be 'more flexible'
- BOJ should set price target as longer term goal, have to reform policy framework to longer-term initiative.
- BOJ should make asset purchases 'more flexible', BOJ should explore approach to monetary base target.
- Uneasy about aiming at price target in specific time, is a time lag for monetary policy
- BoJ should set its price target as a long-term goal.
- Economic slowdown to continue, economy likely to avert recession.
- Negative rates might have a tightening impact on the economy, not easing.
- Japan economy likely to avert recession.



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