Bank of Japan has cut its benchmark rate to - 10 bps from 10 bps, a reduction of 20 bps and has left unchanged quantitative easing parameters.
This is immediate response perhaps to the negative index of industrial production data and to the overall sluggishness in the overall Japanese economy in the backdrop of falling Global trade.
As far as Monetary Policy goes this is most likely the best response from the BoJ at this point of time.
Increasing QE at this time would not have been helpful and indeed counterproductive at this point- so BoJ is again right by leaving that unchanged.
This is immediate response perhaps to the negative index of industrial production data and to the overall sluggishness in the overall Japanese economy in the backdrop of falling Global trade.
As far as Monetary Policy goes this is most likely the best response from the BoJ at this point of time.
Increasing QE at this time would not have been helpful and indeed counterproductive at this point- so BoJ is again right by leaving that unchanged.
No comments:
Post a Comment