As expected, the Bank of Japan kept rates unchanged at -0.1%, and the 10-year bond target stayed at 0%. BoJ officials expressed their confidence that the inflation will rise toward its target of 2%. The BoJ were also happy about the Q3 economic growth of an annualised 2.5%.
We believe this growth has cost too much, and it is unsustainable in the long haul.
By Yann Quelenn