Ex-BOJ’s Momma: Don't see strong need for BOJ to expand stimulus immediately

Former Bank of Japan (BOJ) executive director overseeing international affairs, Kazuo Momma was on the wires via Reuters last minutes, noting that the Japanese central bank need not hold an emergency meeting immediately, while adding that G7, G20 countries can intervene in FX markets, when necessary.

Key Quotes:

It is shared G7, G20 understanding that countries can take various steps, including fx intervention, if necessary

Cannot set in advance specific pace of FX moves that justify intervention

Don't see need for BOJ to hold emergency meeting today or tomorrow, though it can always hold one if necessary

Don't see strong need for BOJ to expand stimulus immediately

Expanding risky asset purchases is the easier option if BOJ were to ease policy further

Expanding JGB buying not easy, deepening negative rates would meet strong resistance among some BOJ board members

BOJ shouldn't fret about monthly price moves and should focus on whether underlying trend inflation is improving long-term