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Short Briefing about Bank of Japan

April 8, 2016 10:45 pm

We are observing that the current position of Bank of Japan in depressing and interest rate i.e. into a negative territory -0.10%, after the rate decision results negative on market, in simple wording negative rate didn’t work in positive way and purchases of Japan Government Bonds is not effective.

We are expecting that Bank of Japan will announce more QE program (Quantitative Easing) on next policy meeting on April 28, 2016, but keep in mind that QE program is at the end of its limits.

Furthermore, the inflation of Japan is still below the central bank’s target to 2%. Bond yields record lows and benchmark 10-year JGB turned into negative impact. Even the 15-year JGB and 30-year bond yield further move to fresh lows.

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