BoJ Tapped to Taper

In their policy meeting on September 20-21, the BoJ will be essentially admitting that they can no longer pursue 2% inflation rate target as ardently as they have been. The financial market will probably react negatively as it perceives the change as a step toward tapering. In our view, the result could be similar to what we observed in the US “taper tantrum” in 2013.

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