- Sayuri Shirai, BoJ board member
After plunging 14% since mid-year, the Japanese Yen's drop is about to stop, the former Minister of Finance Eisuke Sakakibara said. He believes that the nation's currency is unlikely to hit its low of 124.14 per Dollar in the run-up to the financial crisis in June 2007. The Yen fell to the lowest level in seven years of almost 119 last week after more than one year of massive monetary easing by the Bank of Japan. Sakakibara also highlighted that the Japanese economy is not that weak despite the fact that negative impact of April's sales tax appeared to be prolonged. Thus, eventually, the tax increase will loosen its chocking impact on the world's third biggest economy and the Yen will start strengthen.
Meanwhile, Sayuri Shirai, the BoJ board member, underlined importance of the recent surprising BoJ's move of expanding monetary stimulus. Having deployed extra stimulus, the central bank showed its determination to reach the targeted price level and strengthen its credibility, but also can remain now in a wait-and-see mode to assess to what extent the move will bolster the nation's economy and prices. In addition to that, Shirai also signalled that additional monetary easing was not necessary in the near term. Shirai also encouraged companies to help Japan combat deflation by raising wages and capital expenditure.
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