Kazuo Momma (was
the BOJ's executive director overseeing international
affairs, until May)
- 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
Momma speaking in an interview with Reuters
