Just in case you didn’t get the memo from his previous remark
- Says that BOJ will ease monetary policy immediately under such a scenario
- There is significant risk that BOJ has to change its baseline scenario on the economy
- Sees risk of delay in growth pickup during 2H 2019
- Says that BOJ won’t act just because the Fed does
- Instead will look at what is driving any particular action by the Fed
If you want to read between the lines here, they’re also implying that they won’t afford allowing the yen to strengthen by all too much as that may risk a collapse in efforts to restore their current inflation path.
And with the Fed set to cut rates next month and potentially more if trade tensions persist in 2H 2019, there’s a real risk of them having to take action or otherwise USD/JPY will move towards the January flash crash lows or below that.