The International Monetary Fund (IMF) in a statement released on the 26th proposed revisions to the Bank of Japan’s monetary easing. Long-term interest rates, which have been kept below 0.5%, were given flexibility to prepare for a situation in which inflation exceeds expectations. He also warned that interest rates could skyrocket if government debt continues to swell. There is also a possibility that the market will strengthen expectations for a correction of the smoldering monetary policy.
(Source: Nihon Keizai Shimbun)
Although he will not become a feudal lord immediately, if such pressure is gradually applied, it will be easy for the yen to appreciate again.
We expect the large flow of the dollar/yen pair to continue downwards.
