BoJ is the ultimate QE warrior – Goldman Sachs

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Research Team at Goldman Sachs, suggests that the quantitative easing aims to boost growth via a portfolio shift out of safe-haven assets into risk assets.

    Key Quotes

    “The QQE program has aggressively flattened and stabilised the JGB yield curve, encouraging that shift, such that $/JPY sees ‘autonomous’ moves up when risk appetite is good, for example in the summer of 2014 (the move from 102 to 109) and May 2015 (the move from 120 to 125).

    EUR/$ has not benefited from similar portfolio shifts because Bunds – the safe-haven asset in the Euro are – have been too volatile. And, as above, in Japan negative rates have not been introduced as a substitute for further QE, but as an augmentation.”
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