BOJ Holds Policy Rate at -0.1%

The transcript discusses the Bank of Japan's (BOJ) recent monetary policy actions, including the decision not to cut policy rates or extend the QE program. It highlights the initial positive market reaction and the importance of forward guidance. The challenges facing Japan, such as low inflation and growth, are examined, along with the need for fiscal stimulus and structural reforms. The BOJ's commitment to achieving a 2% inflation target is questioned, given past unmet goals. The discussion emphasizes the limitations of monetary policy in addressing all economic issues.

What role does fiscal policy play in Japan's economic recovery according to the text?

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Discuss the implications of the Bank of Japan's forward guidance on market expectations.

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