2 May 2016
BoJ failed to take advantage of the opportunity to ease policy - BBH
Research Team at BBH, suggests that the Bank of Japan did not take advantage of the opportunity to ease policy as it cut both growth and inflation forecasts.
Key Quotes
“The focus ahead of the G7 meeting in late May, being hosted by Japan, will likely be on fiscal policy, where the Abe government is reportedly trying to cobble together a front-loaded spending bill for earthquake relief and economic support. There have been some calls for a JPY20 trillion (~$185 bln) package, in part funded by a new bond issuance that would be included in the BOJ asset purchase program. (Note that Japanese markets are close for a couple of days this week for Golden Week celebrations).”
Key Quotes
“The focus ahead of the G7 meeting in late May, being hosted by Japan, will likely be on fiscal policy, where the Abe government is reportedly trying to cobble together a front-loaded spending bill for earthquake relief and economic support. There have been some calls for a JPY20 trillion (~$185 bln) package, in part funded by a new bond issuance that would be included in the BOJ asset purchase program. (Note that Japanese markets are close for a couple of days this week for Golden Week celebrations).”