Bofa Global Research's Devalier on BOJ Policy Preview

What is the primary focus of the Bank of Japan's current policy adjustments?

• Increasing foreign investments

• Reducing inflation rates

• Flexibilizing yield curve control

• Raising short-term interest rates

According to the BOJ's Monetary Affairs Department, what has the most significant nonlinear impact on CPI inflation?

• Producer price hikes

• Wage increases

• Commodity cost increases

• Exchange rate depreciation

Why is there a delay in reflecting wage increases in macro statistics?

• Wage data is collected annually

• Firms delay salary adjustments until July

• Wage negotiations are ongoing

• Inflation rates are unpredictable

How does the current market sentiment affect the BOJ's approach to policy normalization?

• It causes the BOJ to delay normalization

• It makes cautious normalization easier

• It accelerates the normalization process

• It has no impact on the BOJ's decisions

What is the expected trend for the Japanese yen according to the non-consensus view?

• Significant appreciation

• Stable with no change

• Further depreciation

• Volatile fluctuations

What is a major concern for the BOJ when considering policy adjustments?

• Domestic wage growth

• Global economic outlook

• Japanese stock market levels

• Commodity price stability

What has been a significant factor in the rally of Japanese equities?

• Policy divergence

• Rising commodity prices

• Increased foreign investments

• Stable inflation rates