BOJ Likely to Maintain Current Policy This Year, Former Board Member Shirai Says

The video discusses the challenges faced by the Bank of Japan (BOJ) in managing inflation and exchange rates amidst global economic uncertainties. It highlights the dichotomy in financial markets regarding policy signals and the risks associated with prolonged monetary stimulus. The role of foreign investors and potential speculative attacks on the Japanese market are examined, alongside the impact of Federal Reserve rate decisions on BOJ policy. The video concludes with an analysis of the ongoing trade war and its potential effects on the Japanese economy.

What is one of the main concerns for the BOJ regarding inflation?

• High inflation rates

• Exchange rate movements

• Increasing interest rates

• Rising oil prices

What is the BOJ's current approach to managing its policy?

• Focusing solely on inflation targets

• Reducing monetary stimulus

• Maintaining current policy with flexibility

• Increasing interest rates

What is a potential risk of maintaining extreme monetary stimulus for too long?

• Increased inflation

• Financial system risks

• Stronger currency

• Higher interest rates

How do foreign investors influence the Japanese stock market?

• Through speculative attacks

• By increasing corporate profits

• By stabilizing stock prices

• By reducing market volatility

What could trigger speculative attacks against the Japanese yen?

• Rising oil prices

• US interest rate hikes

• Shrinking interest differential between the US and Japan

• Increased Japanese exports

What potential impact does the US-China trade dispute have on Japan?

• Immediate economic growth

• Increased consumption

• Lagged impact on sentiment and consumption

• Higher inflation rates

What is the BOJ's stance on bond purchasing as a policy tool?

• It is a primary tool

• It is not considered a policy tool

• It is used to stabilize the yen

• It is used to increase inflation