Economists are reaching deep into their files of excuses to explain why the Bank of Japan did not cut interest rates this week. Growth is still positive, some argue. Others say Governor Haruhiko Kuroda was reluctant to ease ahead of the Federal Reserve. More than a few pundits wonder if the BOJ is simply out of options.
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BOJ Governor Haruhiko Kuroda attends a news conference on July 30: BOJ inaction sends a counterproductive signal that his team is out of ammunition. © Reuters
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