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Uchida States BoJ Won't Hike If Markets Unstable, Yen Weakens

BOJ

BoJ Deputy Governor comments are crossing the wires, which strike a dovish tone. The Deputy Governor is speaking in Hakodate.

  • He notes that the central bank needs to keep easing for the time being (a likely reference to keeping accommodative financial conditions). He adds that rates won't be raised if the market is unstable and the rate path will shift if market moves affect the economic outlook (per BBG).
  • Earlier he noted the central bank will adjust easing if the outlook is realized. These remarks follow yesterday's meeting between the BoJ/FinMin and the FSA, where recent volatility in Japan financial markets was clearly a focus.
  • The dovish remarks have lifted USD/JPY, which is now near 146.30, around 1.3% weaker on the day and right on Tuesday highs in the pair. Japan equities are also firmer as these headlines have crossed.

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