The Japanese yen appreciated on expectations that the Bank of Japan (BoJ) could ease its monetary policy. In the view of Commerzbank economists, it could be a tragic mistake for the BoJ to change its approach now.
A continuation of expansionary monetary policy would be logical
“At a time when the inflation trend seems to be reversing in other economies, it could be a tragic mistake for the BoJ to change its approach now. If global inflationary pressure eases now and if inflation in Japan returns below the target of 2 %, the opportunity for sustainable inflationary pressure would be lost again for another generation.”
“I see considerable logic in a continuation of easy monetary policy that I miss in comments that only refer to current levels of inflation. However, I have to admit: these considerations say very little about whether the government and the BoJ after Kuroda they wouldn’t perfectly make this policy mistake.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
