QE Risk for BOJ

The unprecedented quantitative easing (QE) program the Bank of Japan launched last year to revive the country’s stalled economy could be at risk of failure, Oxford Economics says.

“Economic activity has indeed picked up since the QE program began early last year, but there are now serious warning signs that this progress may not be maintained,” Adam Slater, senior economist at Oxford Economics wrote in a report.

The central bank’s large-scale asset purchases were designed to boost money supply growth, asset prices and inflation expectations while holding down interest rates. However, broad money growth slowed markedly in recent months and is now negative in real terms, a clear danger sign.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.