“Rapid forex volatility is undesirable and forex must move stably reflecting fundamentals,” the Bank of Japan (BOJ) new board member Naoki Tamura said on Monday.
Further comments
He believes prices move on various factors, not just in response to monetary policy.
Negative rate policy has exerted a certain effect on the economy but there are questions on how much marginal effect the policy still has.
Japan's economy is on a recovery course but various risks exist such as covid, Ukraine war and overseas slowdown.
FX volatility affects economy, markets so BOJ could respond comprehensively, such as supporting economy with QQE, enhancing sustainability of YCC.
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BOJ’s Tamura: Rapid FX volatility undesirable, FX must move stably reflecting fundamentals
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