Tokyo gropes for new approach as yen continues to fall
key takeaways
Tag: Bank of Japan
The Bank of Japan embarks on a new era
KEY TAKEAWAYS
The Bank of Japan (BOJ) acted as expected, unwinding Kuroda-era policies including negative interest rates, yield curve control, and risk asset purchases.
But the BOJ’s move may be less significant in the near term: the bank will continue to purchase long-term bonds to prevent a sharp increase in interest rates, a decision that will suit Prime Minister Kishida Fumio.
The new interest rate outlook will also spur more debate within the Liberal Democratic Party (LDP) over the future of fiscal policy.
Japan Foresight 