Yen bulls keen to re-engage on BOJ's Nakaso remarks

BOJ's deputy governor Nakaso is crossing the wires, noting that Japan's economy is no longer in deflation. The immediate reaction on the Japanese Yen has been to appreciate against it main peers, as the market interprets Nakaso's comments as downplaying inflation, which may suggest less likelihood to act in the next meeting on Sept 21st. Moreover, today's final Q2 Japanese GDP was higher than expected, implying potentally less pressure for BOJ to act.

Headlines

If necessary we will decide in what way current framework should be adjusted

Fully recognize effect of large scale mon pol on financial institutions

Based on this recognition BOJ will take measures that we judge necessary for Japan's economy

Based on comprehensive assessment BOJ will decide whether or not to make needed adjustments to policy framework