BOJ Testing the Water for Policy Change, Says CIBC's Stretch

The transcript discusses the Bank of Japan's (BOJ) recent market activities aimed at managing speculation about potential policy changes. It suggests that the market has not reacted strongly, indicating a level of comfort with the possibility of changes. The discussion also touches on the timing of potential policy shifts, likely after the LDP leadership elections. Additionally, it places BOJ's actions within a broader global context where central banks are gradually stepping back from aggressive policies, considering the side effects of their actions. The market appears conditioned to these gradual changes.

What actions has the BOJ taken in the market recently?

What does the market's reaction suggest about the possibility of a policy change?

When does the speaker believe a policy change might occur?

What are some negative aspects or side effects of the BOJ's current policies?

How has the market responded to the BOJ's trial balloon regarding policy changes?