Sage Investment Club

The head of Mitsubishi UFJ Financial Group Inc.’s (MUFG) global markets business Hiroyuki Seki spoke in an interview

“I think the Bank of Japan could launch an exit strategy as soon as the first half of the next fiscal year under the new leadership,”

(Note that Japan’s new fiscal year begins in April. Bank of Japan Governor Kuroda finishes his term on April 8. )

An exit is subject to stable inflation increases and wage growth:

  • “We are getting a lot of inquiries about yen interest-rate derivatives, which haven’t moved much until recently,” said Seki, 54. “We need to respond to clients’ growing moves to prepare for a possible paradigm shift from long years of a negative-rate environment.”

Bloomberg (gated) have the report.

USD/JPY is sliding on the day here in Asia. Chatter of a BOJ exit is a yen tailwind.

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