Bank of Japan Meet to Set Policy

The video discusses the implications of a strong election result for Prime Minister Abbe on the Bank of Japan's (BOJ) policy, including the potential reappointment of Governor Kuroda. It explores the momentum of current BOJ policies, the possibility of changes in yield curve control, and the dissent of Governor Kataoka, who advocates for more aggressive measures. The video also addresses challenges related to financial stability and the profitability of regional banks, highlighting the limits of current BOJ policies.

What is the likely impact of Prime Minister Abbe's strong election result on Governor Kuroda's position?

• It increases the likelihood of his reappointment.

• It guarantees his reappointment.

• It has no impact on his reappointment.

• It decreases the chances of his reappointment.

What is the current target for the 10-year bond yield under the BOJ's policy?

• 10 basis points

• 0 basis points

• 5 basis points

• 15 basis points

What is Governor Kataoka's stance on the BOJ's ability to meet its inflation target?

• He is confident in the current policies.

• He thinks the BOJ needs more aggressive policies.

• He believes the target will be easily met.

• He suggests reducing the inflation target.

What potential issue arises from the BOJ's bond-buying strategy?

• It could lead to deflation.

• It may strengthen the yen.

• It could result in the BOJ owning most of the Japanese government bond market.

• It might cause a conflict with fiscal policy.

What concern does the BOJ have regarding regional banks?

• They are not lending enough.

• They are too profitable.

• They are over-lending.

• Their profitability might be undermined.