Ian Shepherdson: Yen Strength Leads to More Stimulus

The transcript discusses the influence of market vigilantes on central banks, focusing on Japan and the US. It highlights Japan's sluggish economy and the impact of yen strength on exports, suggesting more stimulus is needed. In the US, the Fed's dovish stance is supported by low inflation and sub-2% growth, but stronger growth is expected in upcoming quarters. The discussion also covers the breach of the 100 yen level and the implications of negative interest rates, which have become unpopular due to their adverse effects on bank profitability and economic confidence.

What is the expected impact of further stimulus measures in Japan on economic growth?

What changes in sentiment regarding negative rates have been observed recently?