The Bank of Japan which is the central bank of Japan, made promises that they would make inflation higher (Dailywealth). There have stated that they will make this happen no matter what they have to do in order to get it done. Interest rates have been slashed and its quantitative easing program has been hyped up also. The Bank of Japan said that until inflation rises higher than it’t target of 2%, which has been the bank’s target for a while now, they will move forward with these efforts continuously. This move was thought to be a downfall in Japanese stocks. Since the call was made, Japanese stocks have been increased by 20%, see aslo Stansberry Research.
The govener of the Bank of Japan, Haruhiko Kuroda, said that by ending the stimulus program contained by the bank. They are debating leaving in 2019 as it has been predicted that the prices with reach 2%.
The Federal Reserve has already began raising rates. Normalization is being debated by the European Central Bank. Wanting to know if BoJ will follow in those footsteps, kuroda has been found to be under mounds of pressure. Kuroda has acknowledged that the prices for the economy has pointed for an extensive amount of time at this point based on Stansberry Research.
Tuesday it was made clear by Kuroda that the Bank of Japan may not necessarily be ending the monetary stimulus in 2019 just because they are predicted to do so. He feels that is is too early in order to make those specific decisions. The Bank of Japan is making discussion about exiting but has not made any final decisions on how they will handle things the fiscal year 2019 comes around.
The United States has recently been found to be in fear of a possible trade war says Stansberry Research. Those fears have only been rising and not going down. It has been reported that United States President Donald Trump has plans of putting tariffs on aluminum as well as steel that is imported in to the United States. These tariffs would apply to all trading partners of the United States. The tariffs would by 10% for aluminum and 25% for steel.