- Expect underlying inflation to gradually accelerate as economy continues to recover
Nothing too notable here.
- BOJ is gradually shrinking the size of its balance sheet, ideal size will be taking into account overseas examples
- Size of Japan’s monetary base and balance sheet somewhat too big now, which is why we are slowing bond buying
It’s quite a few steps from slowing bond buying to shrinking the balance sheet.
- Expect Japan’s real wages and consumption to gradually improve as rise in import costs seen moderating, wage growth expected to stay strong
This article was written by Adam Button at www.forexlive.com.
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