BOJ Policy Makers Are 'Absolutely Stuck,' Rabobank's Every Says

The transcript discusses the Bank of Japan's (BOJ) recent statement, highlighting that the BOJ is not tightening its policy due to zero core inflation and revised CPI projections. The market's reaction, particularly in currency and bond yields, is analyzed, noting that the BOJ's actions are seen as bullish for bonds but not for the yen. The discussion extends to the challenges faced by other central banks like the Fed and ECB in rolling back quantitative easing and raising interest rates, suggesting that these institutions are stuck in their current policies.

What is the main reason the BOJ is not tightening its policy?

• Zero core inflation

• Increased interest rates

• Revised CPI projections upwards

• High core inflation

How are the currency movements described in response to the BOJ's statement?

• Minor and not very exciting

• Significant and volatile

• Erratic and unpredictable

• Stable and predictable

What is the expected trend for bond yields according to the BOJ's statement?

• Bond yields will fluctuate wildly

• Bond yields will decrease

• Bond yields will remain stable

• Bond yields will increase significantly

What does the BOJ's inability to break out of QE suggest about the ECB?

• The ECB has already exited QE

• The ECB will not attempt to exit QE

• The ECB will easily exit QE

• The ECB may struggle to exit QE

What is the critical view expressed about central banks' claims regarding raising rates?

• Raising rates will not cause any problems

• They are wrong and will face challenges

• They can raise rates without any issues

• Raising rates will solve all economic problems