Signs pointing to BoJ early exit - Commerzbank

Analysts from Commerzbank have made some remarks on current conditions in Japan that are beginning to point to an early end to Japan's QE programs.

Key highlights:

Commerzbank analysts have noted that the Bank of Japan (BoJ) has to purchase fewer and fewer assets in order to meet their yield targets, as outlined by data from the Finance Ministry. Commerzbank notes that the comments from BoJ governor Kuroda that current QE volumes can be maintained while also increasing the yield target make little sense. Adding to the scenario is Prime Minister Shinzo Abe's decline in polling following the government land scandal; Abe is a leading advocate of reflationary efforts, and a collapse in his support base could see an early end to Japan's current expansionary policy strategy.