Should Japan Learn from Europe

Most analysts expect no change to monetary policy when the Bank of Japan (BOJ) announces its decision on Thursday after a two-day meeting, but central bank governor Haruhiko Kuroda’s style of communication could come under scrutiny, according to one analyst.

Nicholas Smith, Japan strategist at research house CLSA, said investors have been mostly dissatisfied with his uninspiring rhetoric so far, adding that Kuroda could benefit from taking a few lessons from his European Central Bank counterpart Mario Draghi.

“At the previous Bank of Japan meeting, he (Kuroda) said ‘I think we’ve done enough for now, we shan’t be doing any more’ and I think most people felt that was an extremely poor way of putting things. What he really needed to say was ‘we will do absolutely anything that is necessary’ in very much a Draghi kind of way,” added Smith.


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