BOJ Needs to Maintain Ultra-Accommodative Policy, Says Nomura's Kinoshita

The video discusses Japan's Consumer Price Index (CPI) trends, highlighting that core inflation remains low and is primarily driven by energy prices. The service sector and durable goods show limited inflationary pressures. The Bank of Japan (BOJ) is expected to maintain its accommodative monetary policy until at least 2019, with potential interest rate changes post-2020. The BOJ faces challenges due to US interest rate trends, which could affect the yen's appreciation.

What is the current core inflation rate in Japan, and how does it compare to the Bank of Japan's target?

• 0.9%, which is close to the target

• 0.9%, which is far from the target

• 2%, which meets the target

• 1.5%, which is slightly below the target

Which component has primarily driven the recent increase in Japan's CPI?

• Durable goods prices

• Energy prices

• Food prices

• Service sector prices

What is the Bank of Japan's current stance on interest rates?

• They plan to increase rates soon

• They will maintain low rates for the foreseeable future

• They are undecided about future rate changes

• They have already increased rates

Until when has the BOJ committed to maintaining its current interest rate policy?

• Until the US changes its interest rates

• Until the consumption tax hike in October 2019

• Indefinitely, with no specific end date

• Until the end of 2018

What challenge might the BOJ face if US interest rates decrease?

• Appreciation pressure on the yen

• A decrease in Japan's GDP

• A widening interest rate gap

• Increased inflation in Japan