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‘The BoJ apparently is hoping to change something in the underlying structure’“The reason for this change appears to be rather academic: having studied why inflation has failed to pick up despite the huge monetary stimulus, the researchers of the BoJ concluded that this was mainly due to too-low and stable inflation expectations. By explicitly lifting the 2% target, the BoJ apparently is hoping to change something in the underlying structure.”
‘It certainly is not a game changer with respect to the overall policy mix’“Which leaves one important variable open: the one-trick pony that the whole strategy of Abenomics continues to be leaning on – a weaker yen. Whether or not this new twist in monetary policy will successfully break the trend of the steady strengthening of the yen remains to be seen.”