Japan PM-BOJ Gov meeting thrown into doubt

By Stanley White

TOKYO (BestGrowthStock) – Japan’s finance minister said on Monday he hadn’t heard anything about a possible meeting between the prime minister and the central bank governor, casting doubt on whether the meeting would take place.

Sources told Reuters on August 13 that Prime Minister Naoto Kan and Bank of Japan Governor Masaaki Shirakawa could meet later this month to craft a response to the surging yen, which threatens the country’s export sector.

Talk had persisted among investors that the meeting could take place on Monday.

Government bond yields at the short end of the curve eased to multi-year lows and the yield curve flattened last week as investors priced in the chance that the BOJ could ease policy with the yen hovering near a 15-year high versus the dollar.

The government and the BOJ may postpone the meeting or downgrade it to a conference call, Jiji news reported on Saturday, in a sign that the meeting may not prompt the BOJ to ease policy as some in the government hope.

“I haven’t heard anything about the meeting,” Finance Minister Yoshihiko Noda told reporters.

If a meeting were to take place, Noda would very likely attend.

The BOJ may consider easing policy at its next meeting on September 6-7, but isn’t in the mood to act now unless the yen heads toward its all-time high of 79.75 per dollar, at a pace of 2 to 3 yen per day, sources have told Reuters.

(Editing by Edmund Klamann)

Japan PM-BOJ Gov meeting thrown into doubt