The Central Bank of Japan may abandon incentives as early as in fiscal year 2019

The leader of the Central Bank of Japan, Haruhiko Kuroda, said that the bank will begin to consider the issue of its withdrawal from the broad monetary stimulus program, in the future financial year, which will start in the spring of 2019 (April 1). Such information is provided by Bloomberg.

This is not the first time that the head of the regulator has indicated a specific signal about the period of normalization of the monetary strategy. The national currency of Japan increased against the background of such events by 0.5% and reached the level of 105.71 for one dollar.

According to Kuroda, today the members of the management board and he himself believe that the price increase will reach 2%, which is expected around 2019 financial year. Based on such forecasts, Kuroda believes that it would be rational to consider the process of withdrawing from the incentive program in the same period.

According to the head of the Central Bank of Japan, the interest rate at the limit of minus 0.1% and the yield rate of 10-year securities at 0% can be adjusted, and this will be discussed at each meeting of the bank on monetary policy issues.

The Japanese Bank's rate differs from that of other leading regulators that it is at the stage of transition to normalization of activity after a long period of stimulation. For example, the US Federal Reserve is already raising rates, and the ECB is discussing the stabilization of the policy.

Rapid economic development, according to the data for the past quarters, the smooth acceleration of inflation and the global growth in the profitability of bonds in the past prompted the idea that the Central Bank of Japan will also be engaged in the normalization of the strategy, probably a way to raise the target on the profitability of bonds. So, the Japanese GDP, according to data for October-December, has increased for the 8th time in a row.

This is one of the longest periods of economic development since the late 1980s. But the dynamics of growth rapidly declined. So, according to the data for the fourth quarter, Japan's economy was able to demonstrate an increase of only 0.5% compared to the same period last year, after the GDP in the third quarter showed an increase of 2.2% year-on-year.

As for inflation, it is too far from the target of 2%. At the moment the companies of the country reject the raising of tariffs and salaries, relying on the instability of the economic future. However, the head of the Japanese government Shinzo Abe encourages them to raise wages by 3% or even higher, in order to increase consumer spending.

In technical analiz, we can wait price 101- 100.

First support level is 101.00