Professor Kawai Sees BOJ Continuing Current Policy

The video discusses the economic context of Japan, focusing on the Bank of Japan's (BOJ) monetary policy, which targets short-term interest rates at -0.1% and long-term rates at 0%. Despite economic growth, inflation remains low, and the BOJ aims to increase inflation expectations. The video critiques Abenomics, noting that inflation has not met targets, but argues that BOJ policies have not failed. The future outlook suggests a gradual increase in inflation, supported by a narrowing GDP gap and rising wages.

What is the current policy of the Bank of Japan regarding interest rates?

What are the current inflation expectations in Japan according to the text?

How does the Bank of Japan aim to influence inflation expectations?

What challenges does the Bank of Japan face in achieving its inflation target?

What indicators suggest that inflationary pressure is mounting in Japan?