In this Focus we argue that monetary tightening in Japan is a potential trigger for a sharp correction in bond markets and other asset prices in the West. The Bank of Japan (BoJ) is likely to start to reverse its ultra-accommodative policy shortly, probably in April. The initial impact on Japanese interest rates, which are currently zero, might be marginal. However, even a small shift might have a disproportionate impact on global markets.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services