BNY Mellon: What is the BoJ to do?
BNY Mellon: What is the BoJ to do?
By Neil Mellor, Senior Currency Strategist, BNY Mellon
By Neil Mellor, Senior Currency Strategist, BNY Mellon
That Japan has yet to put its troubles behind it may be challenging to infer from a positive political narrative that is an indispensable supplement to conventional policy stimulus. Accordingly, expressions of confidence are a matter of routine.
But then, it has been some time since investors truly felt able to suspend their disbelief in the BOJ’s confidence that “momentum toward 2% inflation is [being] maintained”.
Certainly, history will show that the Japanese economy is enjoying its second longest expansion since WWII, and the government’s position remains that deflation is no more