What's going to change ordspråk
What's going to change after the BOJ ends the quantitative policy? Unless Japan's bank deposits start to pay interest rates of like 1.5 percent, Japanese investors will keep buying foreign currencies.
Fumihiko Kawano
Given pressure from the government and the ruling party, the Bank of Japan will be forced to maintain interest rates near zero, even after it ends its quantitative easing policy.
Akio Makabe
If the Bank of Japan takes its first step to end 'quantitative easing' this week ... we believe that it is unwise to assume that the Bank of Japan will continue with zero interest rates for long after ending its policy.
Masuhisa Kobayashi
Expectations of the Bank of Japan raising interest rates this year, as shown by climbing bonds yields, may slow down the outpouring of Japanese institutional investors' money. That will also bring about an unwinding of yen carry trades by foreign investors, supporting the yen.
Jun Kitazawa
The Bank of Japan may ignore pressure from politicians and shift policy to assert its independence. Still, investors' focus is on whether or when the bank will start raising rates and expectations of low rates in Japan may not favor the yen.
Yuji Saito
I think even after the Bank of Japan ends its ultra-easy policy, it would keep short-term interest rates at zero for a while. But the market is now concerned about how banks will change their lending stance.
Tsuyoshi Segawa
The Bank of Japan had changed the policy as expected. But investors took comfort somewhat in some measures it announced to keep interest rates steady after the policy shift, especially the numerical target for CPI.
Ryutaro Matsuyama
The Bank of Japan is like the Fed but more so in that they don't want to surprise the market -- especially in the case of Japan if they're going to raise rates in more than a decade. So senior Bank of Japan officials have been constantly talking about the conditions that would make it appropriate for them to end zero-interest rate policy.
Jon Jacobs
There was a risk he would make more hawkish comments. He reaffirmed that even if the Bank of Japan ends its easy monetary policy it probably won't be increasing interest rates anytime soon.
Tatsuo Ichikawa
If the Bank of Japan keeps its 'quantitative easing' monetary policy unchanged this week, the market will think that it postponed the end of 'quantitative easing' because of mounting political pressure, forcing the market to pay more attention, in the future, to the politicians' comments rather than the message from the Bank of Japan.
Masaaki Kanno
This morning's announcement by the Bank of Japan to end quantitative easing is being viewed as an indication that the Japanese economy is returning to health, but appears insufficient to prompt any consistent yen buying as of yet.
Michael Woolfolk
Bank loans have pretty attractive interest rates these days. Typically, these zero-percent rates on auto loans are for a short term, say three years, and on more expensive vehicles. People end up buying the car, but use a bank loan to do so. Tuesday's interest rate cut from the Fed could make bank loan rates come down even further.
Fritz Elmendorf
US Treasuries, particularly long-term bonds, were robust on Friday, when the Japanese market was closed. Some bond investors view the surge in stocks as bubble while some investors take comfort in the view that the zero-interest rate policy will continue even after the Bank of Japan lifts ultra-loose monetary stance.
Naomi Hasegawa
Any shift in policy on Thursday from the BOJ is very likely to be accompanied by a strong commitment to maintaining zero interest rates. Yield is still very important for Japanese investors and it's nearly a guaranteed event that we'll see a pick up in purchases of foreign assets.
Derek Halpenny
But, as US interest rates are now poised to see further hikes going forward, an end of the current quantitative monetary easing by the Bank of Japan will not narrow wide interest rate differentials between the two countries. And this interest rate gap should continue to support the dollar.
Takashi Kudo
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