BOJ Testing the Water for Policy Change, Says CIBC's Stretch

The transcript discusses the Bank of Japan's (BOJ) recent market activities aimed at managing speculation about potential policy changes. It suggests that the market has not reacted strongly, indicating a level of comfort with the possibility of changes. The discussion also touches on the timing of potential policy shifts, likely after the LDP leadership elections. Additionally, it places BOJ's actions within a broader global context where central banks are gradually stepping back from aggressive policies, considering the side effects of their actions. The market appears conditioned to these gradual changes.

What has been the market's reaction to the BOJ's recent activities?

• Significant volatility

• Calm and stable

• Panic selling

• Rapid buying

When is the BOJ expected to potentially change its policy?

• After the LDP leadership elections

• Later in the year

• Next month

• This week

What is the BOJ possibly doing by observing market reactions?

• Testing the waters for policy changes

• Implementing new policies

• Increasing interest rates

• Reducing market interventions

Why are central banks globally stepping back from aggressive policies?

• To decrease unemployment

• To increase inflation

• Improved macro indicators and focus on side effects

• Due to a financial crisis

What is the market's current condition regarding central bank policies?

• Indifferent to policies

• Expecting immediate changes

• Conditioned for gradual changes

• Unaware of changes