BOJ’s Next Likely Move Is to Cut Negative Rate More, Says Professor Ito

The transcript discusses the Bank of Japan's (BOJ) considerations regarding economic stimulus and negative interest rates amidst global uncertainties. It highlights the impact of external factors like the US and China slowdowns on Japan's economy. The BOJ is speculated to cut negative rates further to counteract yen appreciation and maintain financial stability. The discussion also covers the potential effects of steepening the yield curve on bank profitability and financial stability.

What factors did Mr. Wakatobi mention that could influence the BOJ's decision on stimulus?

What role does the US Federal Reserve play in the context of Japan's economic policy?

What is the significance of the 2% inflation target mentioned in the discussion?

What are the potential consequences of the BOJ cutting its negative interest rates?

How does the appreciation of the yen affect inflation according to the discussion?

In what ways might the BOJ's actions impact the profitability of banks?

What challenges does the BOJ face in maintaining financial stability?