BOJ’s Tamura: Rapid FX volatility undesirable, FX must move stably reflecting fundamentals

“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

Believe prices move on various factors, not just in response to monetary policy.

Negative rate policy has exerted certain effect on economy but there are questions on how much marginal effect the policy still has.

Japan's economy in 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.