BOJ Surprised Markets, Slowed Yen Depreciation: Briscoe

The video discusses the Bank of Japan's (BOJ) predictable actions and the pressure on the yen. It highlights market reactions, inflation concerns, and the potential for yen depreciation. The discussion also covers repatriation risks, the shape of the yield curve, and the impact on banking stocks. The video concludes with an analysis of interest rates and hedging costs.

What is the BOJ's typical approach to handling the yen's depreciation?

• They sell foreign reserves.

• They surprise the market to slow depreciation.

• They follow a strict schedule.

• They increase interest rates.

What factors are contributing to the potential rise of the yen to 170 against the dollar?

• Sticky inflation and rising wages.

• BOJ's lack of credibility.

• Decreasing fiscal spending.

• Decreasing inflation and stable wages.

What fiscal measure is mentioned as contributing to inflation in Japan?

• Reduced government spending.

• Increased tariffs.

• Subsidies on fuel and energy.

• Tax cuts.

What is a key factor for Japanese investors considering repatriation of funds?

• The level of foreign exchange reserves.

• The shape and level of the yield curve.

• The rate of unemployment.

• The level of government debt.

At what yield curve level might money start returning to Japan?

• Around 2%

• Around 0.5%

• Around 1%

• Around 1.5%