Credit Suisse's Shirakawa Says May See BOJ Action in July

The transcript discusses the Bank of Japan's (BOJ) potential changes to its 10-year yield target amid global yield trends and sluggish inflation in Japan. It highlights the weak wage growth in Japan and its implications for inflation. The impact of the Federal Reserve's tightening cycle on the BOJ's monetary policy is also examined, noting the challenges posed by a stable dollar-yen exchange rate. The transcript concludes with a discussion on the BOJ's potential forward guidance regarding yield curve targeting, with key meetings in April and July being pivotal for any announcements.

What is the expected change in the 10-year JGB yield target by the end of the year?

• 70 to 80 basis points

• 50 to 60 basis points

• 30 to 40 basis points

• 10 to 20 basis points

What is the main reason for the delay in the BOJ's yield target adjustment?

• Rapid economic growth

• High inflation rates

• Sluggish inflation rates

• Strong wage growth

Why is inflation pressure in Japan limited despite weak wage growth?

• Because of strong export growth

• Because of increased government spending

• Due to high consumer spending

• Owing to reliance on exchange rate weakness

How did the labor negotiations in spring affect wage growth in Japan?

• They led to significant wage increases

• They resulted in minimal wage growth

• They had no impact on wages

• They caused a decrease in wages

What impact does the Fed's tightening cycle have on the Bank of Japan?

• It leads to increased inflation in Japan

• It creates a headache for the BOJ due to a stable dollar

• It strengthens the yen against the dollar

• It makes it easier for the BOJ to raise rates

What is the BOJ's concern if the yen weakens against the dollar?

• It will lead to higher inflation

• It will increase the trade surplus

• It will reduce export competitiveness

• It will limit the BOJ's independence in rate decisions

What is the BOJ's potential strategy for communicating yield curve targeting?

• Announcing changes only in October

• Starting communication in April and actions in July

• Waiting until next year to announce any changes

• Making changes without any prior communication