An in depth study of G7 monetary policy and cross-border flows ahead of the BoJ’s upcoming policy assessment: The MUFG Global Markets Podcast

With a tug-of-war ongoing in the third wave of Japan’s struggle against the COVID-19 pandemic, the Suga Administration will have to decide about extending the current State of Emergency. The Bank of Japan has started to gradually lay the groundwork ahead of the assessment of monetary easing planned for March, and downside room for JPY rates appears to be more limited. With yield gaps among key currencies still narrow, USDJPY has remained in a tight range and JPY basis have not shown much volatility.

In today’s episode, MUFG Chief Japan Strategist, Takahiro Sekido, discusses the BoJ’s JGB buying plans for February and the Summary of Opinions from the Monetary Policy Board meeting last month. He also presents his recent study on the relative size of central bank balance sheets on cross-currency basis and shares his outlooks for Dollar/Yen, Yen rates, and Yen basis.

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