BOJ Monetary Policy: Impact of YCC

UBS Knowledge Network's Beat Siegenthaler talks to Columbia University's Professor Ito at the IMF Meetings in Bali about the BOJ's latest moves.

by Beat Siegenthaler 21 Nov 2018

Monetary policy normalisation is underway in Japan including stealth tapering of QQE, says Takatoshi Ito, Professor of International and Public Affairs at Columbia University. Ito has held senior positions in the Japanese Ministry of Finance and at the IMF, and served as a member of Prime Minister's Council on Economic and Fiscal Policy from 2006 to 2008. His core view on Japan is that economic strength and wage pressures will allow the BoJ to hit the 2% inflation target within the next year or two. Prof Ito's latest book is on Managing Currency Risk: How Japanese Firms Choose Invoicing Currency. Also note that UBS Research has Japan as the most important positive outlier in their 2019-2020 Global Economic Outlook.

Ito spoke to Beat Siegenthaler of the UBS Knowledge Network at the IMF Annual Meetings in Bali, Indonesia on Oct. 11.