BoJ May Influence Yen to Escape Deflation

One member of the Bank of Japan’s policy board said the central bank may need to boost inflation expectations by influencing currency rates because it is taking such a long time for the country to escape deflation, according to minutes from the central bank’s Aug. 8-9 meeting.

Some board members also expressed concern that a prolonged slowdown in overseas economies could delay Japan’s recovery, the minutes showed on Monday.

The BOJ kept monetary policy on hold at its Aug. 8-9 meeting but cut its assessment of exports and output due to a weak global economy.

Last week, the central bank eased monetary policy by boosting its asset-buying program, with prospects of a near-term recovery in the world’s third-largest economy fading due to weakening exports and a prolonged slowdown in Chinese growth.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza