Something for your Espresso: A trial balloon from Ueda
BoJ governor Ueda hit the wires through Sunday with an exclusive interview for the first time since taking office in April, which could be soon as a trial balloon intended to support the value of the JPY. We still see the fair value of USDJPY above 150 (see chart 1).
Chart 1: USDJPY versus real rates
Ueda hinted that negative interest rates will be gone when wages and prices rise sufficiently, which is in itself not newsworthy, but we have learned a bit more about the timing of such a potential move.
Learn more below.