BOJ Is Probably Stuck in Limbo, Says BofAML’s Devalier

The transcript discusses the Bank of Japan's (BOJ) current policy stance and the challenges it faces in achieving its 2% inflation target. Economists expect more easing from the BOJ, but the bank is hesitant due to global economic conditions and the actions of other central banks like the Fed and ECB. The BOJ is in a difficult position as it waits for signs of economic recovery and struggles with entrenched inflation expectations. The global trend of central banks having trouble boosting inflation is highlighted, with the BOJ's commitment to overshooting its inflation target adding to its challenges.

What is one reason why the Bank of Japan is hesitant to further ease its monetary policy?

• The BOJ is waiting for evidence of a second-half recovery.

• The global economic data is strong.

• The real estate market is cooling down.

• The BOJ has already reached its inflation target.

Why has inflation been slow to pick up in Japan according to the transcript?

• The BOJ has not implemented any monetary policies.

• Businesses are rapidly changing their price-setting behavior.

• The labor market is too tight.

• There is a strong entrenched zero price norm.

What strategy is the BOJ using to shift inflation expectations?

• Reducing asset purchases

• Decreasing labor market participation

• Creating a high-pressure economy

• Increasing interest rates

According to Hiroshi Watanabe, when might the BOJ consider changing its stance on the 2% inflation target?

• When the BOJ runs out of monetary tools

• When the Federal Reserve and ECB shift their stance

• When the Japanese economy reaches full employment

• When inflation in Japan reaches 3%

What challenge does the BOJ face due to the Fed's potential policy changes?

• The BOJ needs to increase its interest rates.

• The BOJ must stop all asset purchases.

• The BOJ is pressured to overshoot its inflation target.

• The BOJ has to lower its inflation target.