After yesterday’s spike in Yen, Masatsugu Asakawa, Japan’s Vice Finance Minister for International Affairs, said the ministry will “monitor the situation for speculative moves in the foreign exchange market.” He noted that “volatility remains quite high high during Sydney trading.” And, “currency markets are trading in extremely thin liquidity, exacerbating price movements.” For for now, the MoF is not considering to call a meeting with the BoJ on the issue yet.
Talking about the BoJ, Nikkei Asian review reported that BoJ board is considering to lower inflation outlook again due to lower oil prices. For fiscal 2019, core inflation forecast could be lowered to 1%, down from October projection of 1.4%. For fiscal 2020, however, there might be just slight revision to current forecast of 1.5%.
