Capital Economics' Thieliant on Upcoming BOJ Policy Decision

The video discusses the sustainability of Japan's yield curve control policy amid investor pressure and potential policy changes with a new governor. It examines the impact of yen strengthening on inflation and the challenges of achieving wage growth in Japan's labor market. The video also highlights household perceptions of worsening economic conditions and the implications for a virtuous economic cycle.

What is the main reason the Bank of Japan is under pressure regarding the yield curve control policy?

• The policy is too popular among investors.

• The policy is not sustainable due to investor targeting.

• The policy has been recently implemented.

• The policy is causing a decrease in bond purchases.

How might the strengthening of the yen affect inflation in Japan?

• It will likely cool inflation.

• It will cause inflation to fluctuate unpredictably.

• It will have no effect on inflation.

• It will likely increase inflation.

What is a significant challenge for Japanese workers in achieving higher wage growth?

• Government intervention in wage negotiations

• Low labor mobility and weak trade unions

• Strong trade unions

• High labor mobility

What percentage of Japanese households feel their livelihoods have worsened, according to the latest survey?

• Less than 10%

• About 25%

• More than 50%

• Exactly 50%

What is a key reason for the government pushing for policy change at the Bank of Japan?

• The decrease in household savings

• The increase in labor mobility

• The broad-based nature of inflation

• The rise in CPAP mask prices