A Paradigm Shift?

“Abenomics” was the phrase coined by economists to describe the policies that the late Shinzo Abe embarked on to end the two decades of deflation in Japan post the bursting of the great Japanese bubble in the 1980s. Abe appointed Haruhiko Kuroda as the Governor of the Bank Of Japan (BoJ) in 2013, who will complete his turbulent ten years in March 2023.

Under Kuroda, the BoJ followed the QQE ( Quantitative and Qualitative Monetary Easing) and the NIRP (Negative Interest Rate Policy) and boosted the BoJ Balance sheets to an enormous ¥700 trillion from a meagre ¥174 trillion.

Shockingly, the BoJ now holds more than 50% of the outstanding sovereign bonds in Japan.

Source: Holger, Bloomberg

Nevertheless, as Kuroda’s term ends, BoJ has seen a historic shift of stance…