'BOJ policy board split on timeline for tightening policy' -Nikkei Asia
Portfolio Pulse from Benzinga Newsdesk
The Bank of Japan's policy board is divided on when to start tightening monetary policy, according to Nikkei Asia. The split is due to differing views on the economic recovery and inflation risks. Some members see the need for a cautious approach due to uncertainties, while others believe the BOJ should signal a shift away from its ultra-loose policy to prevent market confusion and ensure policy sustainability.
December 27, 2023 | 6:26 pm
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NEUTRAL IMPACT
The BOJ's policy board division on monetary policy tightening may lead to increased volatility for the iShares MSCI Japan ETF (EWJ), as investors react to the uncertainty surrounding Japan's economic policy direction.
The BOJ's policy direction is a key driver for the Japanese economy and thus for the performance of EWJ. The division among BOJ policymakers may create uncertainty, which typically leads to market volatility. However, without a clear direction on policy changes, the immediate impact on EWJ may be neutral as the market digests the news.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70