Investors could hardly be more excited about the pressure on the Bank of Japan from new prime minister Shinzo Abe. Japanese equities have soared and the yen crumbled (until this week’s slight strengthening, at least) on hopes the BoJ will act more aggressively to end the deflation, which is widely blamed for crippling the economy.
The big plan is to push the BoJ into adopting a 2 per cent inflation target, double the 1 per cent goal it set last February. But given how badly it has missed that target, would 2 per cent really matter? Read more