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BOJ's Cautious Policy Communication
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Japan's central bank aims to balance potential policy shifts with caution to avoid market destabilization. The Bank of Japan's cautious approach involves communicating potential options without triggering market reactions. The market anticipates the BOJ to end its negative rate policy next year, with varying timings for the shift. The BOJ's communication strategy emphasizes prerequisites for an exit while avoiding specific timing, posing challenges in effective communication.
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How might the BOJ's cautious approach impact market expectations and investor sentiment?
How might the BOJ's decision to end its negative rate policy influence global financial markets and trade relations?
What strategies can the BOJ employ to effectively communicate potential policy shifts without destabilizing the market?
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