BOJ's Nakamura: Monetary policy does not target FX

<ul><li>FX moves have big impact on prices</li><li>BOJ closely watching impact on yen moves on the economy, prices</li><li>Weak yen benefits exports, tourism but is negative for domestic-driven firms and households</li><li>Decision on when to end negative rates depends on economic developments</li><li>If Japan achieves sustained economic recovery, we won't need YCC</li><li>But unfortunately, the deflationary mindset has not been eradicated yet</li><li>So now is not the time to get rid of YCC</li></ul><p>A little bit of this, a little bit of that there by Nakamura. But all in all, these remarks are ones that we have heard for many a time already even since the Kuroda era. If anything, it shows a lack of policy progressiveness so far under the new regime.</p>

This article was written by Justin Low at www.forexlive.com.