BOJ’s Stance Nixes Impact of Intervention, Former FX Chief Says
- Kuroda to keep policy unchanged while at helm, Shinohara says
- Not disclosing intervention likely a strategic choice, he adds
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Intervening in the foreign exchange market will only have a limited impact and looks inconsistent to market participants as long as the Bank of Japan sticks with low interest rates, according to a former official who was in charge of Japan’s currency policy.
“Politically, intervention had to happen, given the weak yen’s impact on prices,” said Naoyuki Shinohara, who served as chief forex official at the finance ministry during the great financial crisis. “But without monetary and fiscal policy working together, there’s no real impact.”