📈The BOJ will raise the policy rate and end the negative interest rate policy.
💼The BOJ may stop purchasing ETFs, as the stock market does not need a backstop.
💭The BOJ will emphasize that even with the changes, accommodative monetary easing will continue.
❓The decision is not expected to be unanimous, with dissenting votes likely.
🔍The BOJ should wait for more evidence of sustainable inflation before tightening further.
What will the BOJ do?
—The BOJ is expected to raise the policy rate, end the negative interest rate policy, and possibly stop purchasing ETFs.
Will monetary easing continue?
—Yes, the BOJ will emphasize that accommodative monetary easing will continue despite the changes.
Will the decision be unanimous?
—No, there may be dissenting votes from some board members.
Should the BOJ tighten further?
—The BOJ should wait for more evidence of sustainable inflation before tightening further.
What does Japan need?
—Japan needs coordination between monetary, fiscal, and growth policies to transition from deflation to moderate inflation.
00:00Introduction and guest introduction.
00:05Discussion about what the BOJ will do.
00:30Confirmation that the policy rate will be raised and the negative interest rate policy will end.
00:43Discussion about the stock market and ETF purchases.
01:36The BOJ will emphasize that accommodative monetary easing will continue despite the changes.
02:01Not all board members are expected to agree with the decision.
03:16Discussion about the current state of the Japanese economy.
06:31The most urgent need for Japan is coordination between monetary, fiscal, and growth policies.
