The BoJ’s possible path to positive rates
Are market expectations about a spring shift from negative Japanese rates credible, asks Sayuri Shirai
Amid the normalisation efforts undertaken by many central banks worldwide over the past two to three years, the Bank of Japan has stood out as an outlier due to the continuation of massive monetary easing. In practice, however, the BoJ has been gradually altering its monetary easing policy for some time. Contrary to market expectations, it may not be able to make drastic changes to its extraordinary policies by spring and this year
The BoJ has been concerned about the side effects of negative
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