GS: Markets Are Running Out Of Patience With The BoJ

GS: Markets Are Running Out Of Patience With The BoJ

According to Goldman Sachs’ FX Views Economic Research team, the markets are running out of patience with the Bank of Japan after it adopted a wait-and-see approach to monetary policy after introducing negative interest rates earlier this year.

Horseman Capital – Japanese Monetary Policy Monster

BoJ: A bad decision 

Last week, the BoJ decided not to expand its monetary policy operations. This decision to stay on hold is understandable when viewed in isolation.

Governor Kuroda’s decision to hold and watch what effects of the negative rate experiment unfold may have been appropriate for a central bank that hasn’t been struggling to stimulate inflation and growth for more than a decade.