by Gerardo Del Real
Central bank confusion continues. The Bank of Japan once again decided against aggressive monetary policy and instead decided to stick to more of the same. It also announced it would review the impact of the current policy.
Results from the “review”, which are set to be announced at the September 20-21 meeting, will be interesting because it brings the BOJ closer to either abandoning its failed policy or having to double down and go the helicopter money route.
I continue to believe before the BOJ and other central banks admit failure, they will first double down and ease further.