Japan has officially stopped its quantitative tightening (QT) program in order to prevent a systemic collapse in the bond market. The country’s economic management has activated the money printing (QE) mechanism to maintain financial balances.
THERE MAY BE A CHAIN SALES WAVE
The decision puts direct pressure on large funds that invest in global markets, especially by borrowing in zero-interest Yen. According to the data compiled by Sözcü, similar loosening steps taken in the past led to sharp value losses of up to 12.5 percent in stock markets within 24 hours.
Global financial circles are worried that this move by the Bank of Japan (BOJ) will start a chain selling wave in the stock markets on Monday. It is stated that the American Central Bank (FED) and the European Central Bank (ECB) may consider emergency interest rate cuts against a possible liquidity crisis.
