June CPI Another Heartbreaker for BOJ, Says BofAML's Devalier

The video discusses Japan's economic challenges, focusing on the latest CPI numbers and their implications for the Bank of Japan. It explores the country's monetary policy, particularly the Yield Curve Control (YCC) and the potential for tapering. The discussion also covers the strength of the yen, trade tensions, and their impact on global growth. The resilience of the dollar-yen exchange rate is attributed to Japanese flows and M&A deals, while the potential for auto tariffs and trade wars are noted as concerns.

What was the main concern for the Bank of Japan regarding the June CPI numbers?

• The inclusion of energy prices

• The drop in the excluding energy measure

• The rise in global oil prices

• The increase in domestic demand

What is the Bank of Japan's approach to YCC targets?

• Raising interest rates

• Reducing the size of net purchases

• Signaling a policy move

• Increasing the size of net purchases

How has the Dollar Yen remained firm despite trade war concerns?

• Owing to higher oil prices

• Because of Japanese M&A deals

• As a result of reduced exports

• Due to increased domestic consumption

What potential announcement is causing concern in the trade war context?

• New energy tariffs

• Auto tariffs

• Increased import duties

• Higher export taxes

What has been the impact of the trade war on global growth so far?

• Complete halt in growth

• No impact on growth

• Slight dampening of growth

• Significant dampening of growth