As markets tune into how the Federal Reserve is going to rein in its massive stimulus program, so is the Bank of Japan.
The BOJ, the pioneer of so-called quantitative easing, is still years away from tapering off its own extraordinary stimulus program so it has the luxury of watching the U.S. central bank go first.
But the more that the BOJ is able to push inflation towards its policy target of 2 percent – compared with less than 1 percent now and following years of deflation – the more attention financial markets will pay to how Japan’s exit debate is shaping up. For now, all eyes are on the Fed.
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