Until now, the time difference has prevented the Bundesbank from trading during this market phase and it is therefore currently unable to directly respond to economic data or unexpected market events in Japan. In this respect, the opportunity to trade in Tokyo will minimise potential losses and help limit risks for investment committee and trading positions.
Over the balance of the policy horizon, inflation is expected to stay around the middle of the target range. Risks remain… Before Yolanda, BSP had been keeping a close watch on the spillover effects of global developments. Specifically, 1) rapid domestic liquidity growth, 2) strong domestic credit growth; and 3) potential asset bubbles.