Derek Halpenny, European Head of GMR at MUFG, suggests that the Sayuri Shirai’s term on the BOJ Policy Board will end on 31st March and she will be replaced by Makoto Sakurai, an economist with close ties to the LDP and who is seen as being more supportive of further rate cuts if needed. Key Quotes “Shirai did support Kuroda by voting in favour of both QQEI and QQEII but voted against the decision to cut the interest paid on reserves into negative territory in January. Governor Kuroda also spoke today and stated that the BOJ was not planning further cuts in interest rates. However, he said the same in January, so we perhaps can’t read too much into that comment. Cash earnings data today did show a pick-up overall although regular wage growth slowed from 0.4% to 0.1%. The scale of drop in USD/JPY is limiting the upside now that financial market conditions have improved but a slow grind higher is possible if broader market conditions remain favourable.” For more information, read our latest forex news.