Japan: Is This Time Different?
1 The policy board is the Bank of Japan’s highest decision-making body. The board determines the guidelines for currency and monetary control, sets the basic principles for bank operations, and oversees performance of the bank’s officers, excluding auditors and counselors. The board consists of the governor, two deputy governors, six “members,” three or fewer auditors, six executive directors, and a few counselors.
2 The Consumer Price Index (CPI) is a gauge of inflation that measures changes in the prices of basic goods and services. The CPI ex food and energy, as mentioned above, would exclude those goods.
3 Average maturity is calculated by weighting the maturity of each security in a portfolio by the market value of the security, then averaging these weighted figures.
4 A real estate investment trust (REIT) pools investors’ capital to invest in a variety of real estate ventures. There are three types of REIT: Equity REITs buy properties that produce income. Mortgage REITs invest in real estate loans. Hybrid REITs usually make both types of investments.
This question-and-answer session represents the views of Takahide Kiuchi, a member of the policy board of the Bank of Japan. The views and opinions expressed are as of the date of publication and do not represent the views of Lord Abbett. This material is for information purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
The opinions in the preceding economic commentary are as of the date of publication, are subject to change based on subsequent developments, and may not reflect the views of the firm as a whole. This material is not intended to be relied upon as a forecast, research, or investment advice regarding a particular investment or the markets in general. Nor is it intended to predict or depict performance of any investment. This document is prepared based on information Lord Abbett deems reliable; however, Lord Abbett does not warrant the accuracy and completeness of the information. Consult a financial advisor on the strategy best for you.