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22 Apr 2015
BoJ Candidate Funo insight - Nomura
FXStreet (Guatemala) - Analysts at Nomura offered an insight to BOJ's policy board candidate Yukitoshi Funo who previously expressed opposition to yen appreciation.
Key Quotes:
"On 21 April, the government proposed Yukitoshi Funo as the successor to Yoshihisa Morimoto (whose term of office ends on 30 June) as a member of the BOJ policy board."
"Mr Funo's views on monetary policy are unknown; previous expression of opposition to yen appreciation."
"Mr Morimoto voted against the decision to introduce additional monetary easing measures in October 2014. We have for some time focused on whether someone favorable toward monetary easing would be selected to replace Mr Morimoto, from the viewpoint of the balance of power within the BOJ policy board."
"Mr Funo comes from an industrial background, and at present we regard his views on monetary policy as an unknown quantity. We think the government may have been unable to put forward a clear reflation proponent. Based on his comments in the past, however, Mr Funo is opposed to yen appreciation beyond USD/JPY of 100."
"On 22 June 2011 Reuters reported his saying that in response to the yen’s continued appreciation Toyota Motor has thus far achieved impressive COGS reduction, but that yen appreciation to USD/JPY of 80 or even further is excessive."
"On 25 September 2009 Bloomberg also reported his comments that a USD/JPY rate of around 90 feels somewhat difficult for Japan’s economy, and that a little more yen depreciation would probably be positive. We think observers will be waiting to hear Mr Funo’s views on the current USD/JPY rate of around 120."
Key Quotes:
"On 21 April, the government proposed Yukitoshi Funo as the successor to Yoshihisa Morimoto (whose term of office ends on 30 June) as a member of the BOJ policy board."
"Mr Funo's views on monetary policy are unknown; previous expression of opposition to yen appreciation."
"Mr Morimoto voted against the decision to introduce additional monetary easing measures in October 2014. We have for some time focused on whether someone favorable toward monetary easing would be selected to replace Mr Morimoto, from the viewpoint of the balance of power within the BOJ policy board."
"Mr Funo comes from an industrial background, and at present we regard his views on monetary policy as an unknown quantity. We think the government may have been unable to put forward a clear reflation proponent. Based on his comments in the past, however, Mr Funo is opposed to yen appreciation beyond USD/JPY of 100."
"On 22 June 2011 Reuters reported his saying that in response to the yen’s continued appreciation Toyota Motor has thus far achieved impressive COGS reduction, but that yen appreciation to USD/JPY of 80 or even further is excessive."
"On 25 September 2009 Bloomberg also reported his comments that a USD/JPY rate of around 90 feels somewhat difficult for Japan’s economy, and that a little more yen depreciation would probably be positive. We think observers will be waiting to hear Mr Funo’s views on the current USD/JPY rate of around 120."