BOE could ease further, BOJ is stuck, fiscal stimulus coming soon – Rabobank

Jane Foley, Senior FX Strategist at Rabobank discusses central bank outlook, need for structural reforms, and move from monetarism to Fiscalism.

Key points

BOE – Likely to keep doors open for further easing next year. Needs to see improvement in investment

BOJ –wants to steepen the yield curve and help pension fund industry and banks. Further deepening of negative rates appears difficult

BOJ and Fed - BOJ wants stronger dollar, but the Fed is unlikely to tighten policy sooner-than-expected

Fiscal spending - Central bank policy exhaustion, need for structural reforms would eventually force governments to come up with fiscal spending program