12 Dec 2016
BOJ "may soon have to think about tightening for the first time since 2007" - WSJ
The Wall Street Journal (WSJ) ran a story over the weekend, noting that Japanese central bank; the BOJ may soon have to resort to tightening for the first time since 2007 in wake of higher inflation expectations from the Trump’s presidency.
Key Highlights:
One of central banking’s most aggressive easers—the Bank of Japan (BOJ)—may soon have to think about tightening for the first time since 2007.
In a Trump-fueled turnaround, the BOJ may have to lift its 10-year government-bond target from the recently set zero
Triggered by expectations that his policies would boost U.S. growth, inflation and interest rates
So far, that has been good for Japan, where the weaker yen is brightening exporters' prospects, helping send Tokyo stocks to 11-month highs