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Minutes from the BOJ's April 26 meeting show some board members believe the link between...

Minutes from the BOJ's April 26 meeting show some board members believe the link between inflation expectations and actual inflation is tenuous, underscoring the notion that inflation will remain below the BOJ's official forecast of 1.9% in 2016. Additionally, some members noted the apparent contradiction in buying bonds to keep rates low while simultaneously promoting inflation (which would put upward pressure on yields). Some commentators have flagged this perceived inconsistency as a contributing factor to recent volatility in the market for Japanese government bonds (JGBL).
Comments (6)
  • User 447425
    , contributor
    Comments (1258) | Send Message
     
    "Some commentators have flagged this perceived inconsistency as a contributing factor to recent volatility in the market for Japanese government bonds (JGBL). " nothing like stating the obvious to make a point.
    27 May 2013, 01:52 PM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    Well, they can just double their money printing (QE) program and if that is not enough, double again and so on.
    27 May 2013, 03:25 PM Reply Like
  • Yegor Perelygin
    , contributor
    Comments (8) | Send Message
     
    They don't really have a choice, but to keep going forward with more monetary easing - they will increase the QE scope if they need to. It's like sailing through dangerous waters, you just persevere.
    27 May 2013, 05:07 PM Reply Like
  • marketwatcher23
    , contributor
    Comments (1186) | Send Message
     
    persevere right into that iceberg
    27 May 2013, 06:38 PM Reply Like
  • yliu54
    , contributor
    Comments (171) | Send Message
     
    So it means there comes another central bank who doesn't know what exactly he is doing and what he wants. And, I am sorry to say Japanese government was, is and probably will be one of the most irresponsible ones in a civilized world.
    27 May 2013, 11:56 PM Reply Like
  • User 447425
    , contributor
    Comments (1258) | Send Message
     
    The Japenese have one and only one option - force nominal GDP growth via inflation - their debt is too large and the pain would be too great with austerity. They will continue to depreciate their currency to "export" deflation - that is their only option. You can count on it.
    2 Jun 2013, 12:35 AM Reply Like
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