BoJ June meeting minutes:
Members agreed tension in global financial markets had abated due to aggressive fiscal and monetary policies.
Members shared view markets continued to be nervous due to high uncertainty regarding domestic and overseas economies.
A few members said the impact of COVID-19 on the global economy would become prolonged without effective vaccines and medicines.
Some members were of view Japan’s economy was showing signs of bottoming out recently.
Some members said must pay attention to second-round effects of COVID-19 such as how households’ and firms’ mindset, the behaviour would change long-term.
Many members expressed recognition that economic activity could be significantly constrained again if the second wave of COVID-19 occurred.
Market implications
The Bank of Japan meetings of late have been non-events in terms of the yen while existing policy measures have been unchanged.
USD/JPY remains in a fairly tight range despite global economic uncertainties and various geopolitical tensions which have weighed on regions equities.
there are limited clear catalysts for any idiosyncratic moves in the pair this week bar what developments we may see in the IS dollar and equities pertaining to the coronavirus backdrop.
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