Merrill Lynch Sees Kuroda Staying Quiet on Exit

The video discusses Japan's economic situation, focusing on inflation and wage growth, which remain below the Bank of Japan's (BOJ) targets. Governor Corona is expected to maintain a cautious stance on monetary policy to avoid market disruptions. Despite positive inflation outlooks, Japan's core inflation is stagnant, and wage pressures are not translating into higher inflation. The BOJ has been quietly tapering its bond purchases, although this is not officially acknowledged in policy statements. The policy board is likely to retain current language until later in the year.

What concerns are raised about wage pressures and their impact on inflation?

Why might the BOJ retain its current policy language for a longer period?