BOJ Leaves Interest Rates, Asset Purchases Unchanged

The Bank of Japan (BOJ) maintained its full stimulus, a move anticipated by the market. The BOJ's statement was less optimistic about corporate profits and business sentiment. Following the decision, Japanese shares were sold off, and the yen was bought. Japan faces external risks, including China's slowing economy and global trade tensions, which pose threats to its economy. Central banks worldwide have become more dovish, with the Fed and ECB adjusting their rate hike expectations. Japan's economy is growing at a slow pace, with core CPI under 1%. Economists have revised their expectations for tapering in Japan, now predicting it for late spring at the earliest.

What was the market's reaction to the BOJ's decision to maintain full stimulus?

• The yen was sold, and Japanese shares remained stable.

• Japanese shares were bought, and the yen was sold.

• Japanese shares were sold off, and the yen was bought.

• There was no significant market reaction.

What external risk is partly responsible for China's economic slowdown?

• Trade tensions

• Technological advancements

• Political instability

• Natural disasters

How have central banks around the world responded to global economic challenges?

• By maintaining a neutral stance

• By reducing monetary stimulus

• By becoming more dovish

• By increasing interest rates

What is the current growth rate of Japan's economy?

• 2.0%

• 1.0%

• 1.5%

• 0.8%

When do economists now expect tapering in Japan to potentially begin?

• As early as December

• Late spring at the earliest

• Next summer

• Not until next winter