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:
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'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.