BOJ Playing Monetary Policy Jenga

The Japanese economy averted recession in  the fourth quarter of 2022, expanding by an annualised 0.6%, but this was much smaller than the median forecast of 2% GDP growth. The latest data point to the challenge for incoming Bank of Japan governor, Kazuo Ueda, in normalising the bank’s ultra-loose policy without derailing the fragile economic recovery. What options does the Japanese central bank and government have to navigate the delicate policy tightrope? Tokyo-based journalist William Pesek shares his insights.

Image credit: Saranya Phu akat