Keio Uni's Shirai Previews Bank of Japan Decision

The transcript discusses the Bank of Japan's (BOJ) potential policy changes regarding yield curve control and its impact on the market. It highlights the BOJ's cautious approach to altering its fixed rate JGB purchase operations, aiming for more flexibility. The discussion also covers the influence of inflation, particularly food-related, on BOJ's decisions, and the potential appreciation of the yen. The importance of clear communication by the BOJ Governor in managing market expectations is emphasized, with a focus on achieving sustainable inflation targets and monitoring wage growth.

What is the BOJ considering changing in its yield curve control policy?

• Reducing the 10-year yield target to 0%

• Eliminating all bond purchases

• Making JGB purchase operations more flexible

• Increasing the target range significantly

What was introduced by the BOJ in March 2021?

• A new inflation target

• Continuous fixed rate operations

• A reduction in interest rates

• A new currency policy

What accounts for the majority of Japan's current inflation?

• Energy prices

• Food-related costs

• Technology costs

• Housing prices

What is the BOJ's stance on making major policy adjustments currently?

• They are eager to make changes

• They are waiting for more positive economic indicators

• They have already made significant changes

• They are reducing interest rates

What is a key focus for the new BOJ Governor in terms of market communication?

• Reducing inflation

• Increasing interest rates

• Communicating clearly with markets

• Expanding the bond purchase program

What will the BOJ likely wait for before making significant policy changes?

• A decrease in global inflation

• The outcome of wage negotiations

• A new government policy

• A change in US interest rates

What is the BOJ's current inflation target?

• 2%

• 1%

• 4%

• 3%