15 Quotes by Masuhisa Kobayashi

The CPI was higher than expected and is supportive for the BOJ. The markets have already discounted an early end to the quantitative easing policy.

No one's ever seen anything like this. There can be various patterns to the way the Bank of Japan will exit the policy.

Given that producer prices have risen more than 2 percent over the past few months, we have to consider that in Japan's corporate environment inflation is already mounting. Producer price inflation is highly likely to translate into consumer price increases.

Giving a super-clear predictability on the course of monetary policy will not be good for any central bank.

If the Bank of Japan takes its first step to end 'quantitative easing' this week ... we believe that it is unwise to assume that the Bank of Japan will continue with zero interest rates for long after ending its policy.

It is possible that this year will mark the end of the deflation and will bring in a paradigm shift to the bond market next year. Ten-year yields may rise to 2 percent by the end of March next year.

Japan's growth prospects look more promising and we are on the threshold of an end to deflation. Yields are set to increase.

US yields have continued to rise in anticipation of tightening beyond normalization, and we should also prepare for a paradigm shift in Japan as well.

The fact that BOJ acted in the face of resistance from certain government officials and politicians means the market must now focus its attention on the central bank rather than the government.