Most likely Bank of Japan will face the “critical moment” in taking the decision about the necessity of further monetary policy mitigation in May. This news was announced by the adviser of prime-minister of Japan on Monday. Basically, he made it clear that the government will be waiting for further actions from Bank of Japan after the sales tax increase in April. According to Honda, when taking a decision regarding the strategy, Bank of Japan most likely will be emphasizing economic indicators like stock prices, exchange rates, inflation expectations and CPI. Comments by Honda were said one week after Bank of Japan announced about doubling measures which stimulate lending. It was veryl unexpectful for investors and cause a rapid growth on Tokyo stock market.
