The Bank of Japan (BoJ) is likely to ease monetary policy if Tokyo intervenes in the FX market, Reuters reports. In case Tokyo avoids intervention, the central bank will mull easing the policy if the yen rises further or uncertainty over the U.S. economy hampers Japan’s recovery.
The easing will depend on how much the yen rises. The BoJ may postpone its two-day rate review, due Aug. 4-5, 2011, to ease policy if the rise in yen is good enough.
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