Skip to main content

Monetary and fiscal outlook points to further yen weakness

The Bank of Japan is likely to maintain its current policy settings at its Board meeting tomorrow. But in contrast to the US Fed, the question is whether the Japanese central bank will eventually have to increase its asset purchases, rather than when it will scale them back. We think the Bank of Japan still has a lot more work to do and that the yen has further to fall. What’s more, additional easing from the Bank of Japan will help keep global monetary conditions loose even when the Fed starts to taper QE3.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access