BOJ Doesn't Need to Add Easing: Economist Muguruma

The video discusses the current state of central banks' monetary policies, focusing on the Bank of Japan (BOJ) and its stance amid global easing trends. It explores the effectiveness and limits of Japan's monetary policy tools, the challenges in the Japanese Government Bond (JGB) market, and the implications of negative yields on financial stability. The video also debates the relevance of maintaining a 2% inflation target and the potential impact on the bond market.

What is the market's expectation regarding the Fed's action this week?

• A 50 basis point cut

• A 25 basis point cut

• No change in rates

• A rate hike

What is the BOJ's stance on changing its monetary easing policies?

• They see no need to change

• They are undecided

• They will definitely ease further

• They plan to tighten policies

What is a potential action the BOJ might take according to the discussion?

• Change inflation target

• Reduce bond purchases

• Extend forward guidance

• Increase interest rates

What is a major concern for the JGB market?

• High liquidity

• Low liquidity

• Excessive foreign investment

• High inflation

What is the impact of a flat yield curve on Japanese banks?

• It increases their profits

• It makes it harder to profit

• It has no impact

• It reduces their lending

What is the global trend regarding bond yields?

• Increasing positive yields

• Stable yields

• Increasing negative yields

• Decreasing negative yields

What is a challenge for financial intermediaries in a negative yield environment?

• Increased customer trust

• Difficulty in continuing business

• Stable profits

• Easier business operations