The last of the doves: BoJ unlikely to change course anytime soon

Inflation may be a scourge elsewhere, but Japan is unruffled. Instead, the world’s third-largest economy is showcasing its appeal to investors.

Central bankers seeking to deploy rate hikes against inflation risk collateral damage as tighter policy threatens already swollen debt servicing costs.

The BOJ expands purchases and eases further

Today’s move by the Bank of Japan to boost asset purchases underscores a globally coordinated effort by central banks to contain the coronavirus fallout.

The BOJ appears to be stealthily normalising while keeping rates extremely low. But small steps for Japan’s central bank could be big steps for its currency.

Recent easing measures in China should support Asian high yield bonds, while we also see value in Japan financials bolstered by the BOJ's ETF purchases.

The Bank of Japan kept its easy monetary policy while tweaking its framework to give itself more flexibility, emphasising that normalisation is nowhere near.