Band of Japan Deputy Governor Nishimura was also on the wires, reaffirming the BOJ’s dovish stance by saying it is important to persist with an accommodative policy to help sustain the economy's recovery. Though he expects Japan's economy to pick up further, he notes downside risks are still high adding that developed countries in general could face downwards pressure due to balance sheet adjustments.
Otherwise he notes it will take a while for inflation to go to the desired level, with annual CPI falls likely to continue for a considerable time. Financial conditions are said to be widely improving though, with the BOJ to decide on whether to extend its corporate support measures at the next Oct 30th policy meeting or later. Whilst on Japan, car-maker Honda commented on the fall of the dollar, saying that if it falls further then the company would need to secure key export markets other than the US to sustain production at its Japanese factories. Nissan also joined in with comments that it would use US-made cars for exports to “dollar countries” such as in the Middle East. Bear in mind that Japanese corporate had mostly budgeted a USDJPY rate closer to 95.0 than current levels for Q4 and current sentiment suggests such a level is well out of reach.
Otherwise he notes it will take a while for inflation to go to the desired level, with annual CPI falls likely to continue for a considerable time. Financial conditions are said to be widely improving though, with the BOJ to decide on whether to extend its corporate support measures at the next Oct 30th policy meeting or later. Whilst on Japan, car-maker Honda commented on the fall of the dollar, saying that if it falls further then the company would need to secure key export markets other than the US to sustain production at its Japanese factories. Nissan also joined in with comments that it would use US-made cars for exports to “dollar countries” such as in the Middle East. Bear in mind that Japanese corporate had mostly budgeted a USDJPY rate closer to 95.0 than current levels for Q4 and current sentiment suggests such a level is well out of reach.
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| US | 0.25% |
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| EMU / EURO | 1% |
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| Australia | 3% |
| New Zealand | 2.5% |
| Sweden | 0.25% |
