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BOJ Debates End of Ultra-Easy Policy
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The Bank of Japan (BOJ) debated the communication of a potential end to its ultra-easy policy, signaling a step towards an exit from the easy monetary policy. The BOJ discussed the possibility of phasing out its complex framework and keeping the policy ultra-easy, while being divided on its progress towards its inflation target and the impact of rising living costs and small firms' capacity to hike wages. The BOJ provided no clear hints of an imminent end to negative rates, with economists predicting a potential end next year.
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How could the Bank of Japan's decisions affect global financial markets and investor sentiment?
How might the potential end to the ultra-easy policy impact the Japanese economy and its inflation target?
What strategies could the BOJ employ to balance the potential end of negative rates with the need to support the economy?
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