Given global and domestic inflationary pressures, it doesnt seem sustainable for BOJ to maintain YCC for an extended period of time. But their decision to keep policy unchanged can be interpreted to reflect a strong desire to exit in a controlled manner.
Even widening the band was a marked change at the end of last year after decades of ultra-loose monetary policy.
The BoE is very clear that its different approach to bringing inflation down – i.e. the recession will do the job – runs the risk of leaving inflation higher. The approach of the Fed and now the ECB – namely, to take rates to restrictive levels and maintain them there whilst also letting the economic downturn takes its effect – seems to be more focussed on indicating a clear and hawkish intent to break the back of inflation.
Given global and domestic inflationary pressures, it doesnt seem sustainable for BOJ to maintain YCC for an extended period of time. But their decision to keep policy unchanged can be interpreted to reflect a strong desire to exit in a controlled manner.
Even widening the band was a marked change at the end of last year after decades of ultra-loose monetary policy.
The BoE is very clear that its different approach to bringing inflation down – i.e. the recession will do the job – runs the risk of leaving inflation higher. The approach of the Fed and now the ECB – namely, to take rates to restrictive levels and maintain them there whilst also letting the economic downturn takes its effect – seems to be more focussed on indicating a clear and hawkish intent to break the back of inflation.
Have I understood correct that this is what happened to Boe and Boj ? They needed to back of and start intervene again?