As expected, the BoJ’s MPM decided to leave QQE unchanged today. We maintain our view that the BoJ does not need to boost QQE while the USD/JPY is rising due to a strong US economy. The BoJ’s QQE policy is prominent even amongst the G3 central banks. Nevertheless, QQE does not seem to be producing a noticeable effect. With interest rates so low that they no long influence the market, currency depreciation improves monetary conditions and becomes more important as a catalyst for QQE.
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