BOJ shouldn't rush into easing further given side effects of ultra-loose policy

  • next half year will be time where BOJ needs to carefully scrutinise economic developments due to tax hike impact, delay in global growth pick
  • Japan could slip back into deflation if overseas slowdown bigger than expected, push output gap into negative territory
  • BOJ must prepare in case further policy response becomes necessary with eye on overseas growth, Japan's economic outlook

Earlier here:


'Shouldn't rush to ease further' is something to note. IMO.

The BOJ will if needed (as they always say) but this is cautionary note.