BOJ Keeps Ultra-Low Rates

The transcript discusses Governor Kuroda's stance on maintaining monetary stimulus due to ongoing economic needs and rising inflation, with core CPI expected to increase. The BoJ plans to continue easing policies amid currency market fluctuations. A new stimulus plan by Prime Minister Kishida aims to boost the economy, raising questions about the impact on debt and deficit. The importance of sustainable inflation through wage growth is highlighted, with caution advised regarding currency interventions.

What is the main reason Governor Kuroda supports maintaining monetary stimulus in Japan?

• To reduce inflation

• To support economic growth

• To increase interest rates

• To stabilize the currency market

What action is the Bank of Japan taking in response to currency market fluctuations?

• Reducing interest rates

• Increasing monetary stimulus

• Buying 10-year JGBs daily

• Selling foreign reserves

How much additional funding did the new budget from Prime Minister Fumio Kishida include?

• $300 billion

• $100 billion

• $400 billion

• $200 billion

What does Governor Kuroda believe is necessary for sustainable inflation in Japan?

• Lower interest rates

• Rising commodity prices

• Higher wages

• Increased government spending

What is a concern related to the yen's weakness mentioned in the transcript?

• It will stabilize the economy

• It might force government intervention

• It could cause inflation to drop

• It may lead to higher exports