UBP's McFarland Sees No Real Inflation in Japan

The video discusses the Bank of Japan's (BOJ) decision to maintain its JGB yield target at zero percent and its balance rate at negative 0.1%. Despite one dissenting vote, the policy remains unchanged due to low inflation in Japan. The video compares BOJ's voting dynamics with other central banks like the Bank of England. It highlights the potential impact of global monetary policy shifts, particularly if the US and European yield curves rise, which could pressure the BOJ to reconsider its stance.

What is the current target for the 10-year JGB yield set by the BOJ?

• 1%

• 0%

• Negative 0.1%

• 0.5%

Why did the BOJ decide to maintain its current policy?

• Pressure from the US

• Due to high inflation in Japan

• Because of a unanimous vote

• Lack of significant inflation in Japan

What could cause the BOJ to reconsider its monetary policy?

• A significant move in the US yield curve

• A change in the Bank of England's policy

• A decrease in Japan's inflation

• A unanimous vote within the BOJ

How might the actions of the ECB affect the BOJ's policy?

• It could lead to a decrease in the yen's value

• It might force the BOJ to tighten its policy

• It could cause the BOJ to lower interest rates

• It would have no impact

What is a potential consequence of global yield curves moving quickly?

• A rise in Japan's inflation

• A sell-off in the yen

• A decrease in US interest rates

• An increase in the BOJ's balance rate