, Columnist
What's the Point of Hiking When Recession Looms?
Japan's central bank could find itself ahead of the curve — by having done nothing at all.
A man with a plan.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
After months of pressure to join other central banks in tightening policy, the Bank of Japan finds itself right back where it’s been so often: expecting weaker growth, forecasting a temporary blip in inflation that ultimately will trail its target, and with a litany of uncertainties fogging up the horizon.
While markets have been quick to blame central bankers for moving too slowly, Haruhiko Kuroda might just have outsmarted the lot. As the specter of a possible US recession looms and traders bet on Federal Reserve cuts next year, Japan could find itself ahead of the curve by having done nothing at all.