Do Markets Understand BOJ Policy?

The video discusses Japan's exchange rate policy, focusing on the role of the Ministry of Finance in foreign bond purchases to influence currency appreciation. It examines the impact of negative interest rates on Japanese banks, highlighting their profitability and financial intermediary functions. Despite initial market hesitation, the new monetary policy framework, including inflation overshooting commitment and yield curve control, has been well-received, contributing to Japan's moderate economic recovery.

How has the introduction of negative interest rates affected banks' lending attitudes?

What is the market's response to the new monetary policy framework introduced?

What steps will be taken to ensure effective communication with market participants?