Japanese Economic Data and Their Impact on The Monetary Policy | Wassim Jomaa in an Interview with Al Arabiya

Japanese data were very strong, and wage growth led to increased spending, which is what Bank of Japan is seeking to achieve. Corporate profits have also risen and the return on equity (ROE) has improved.

It’s difficult to reverse quantitative easing (QE) after approximately 15 years or more of its implementation. Bank of Japan has clarified the upcoming tightening of its monetary policy and may implement calibration while waiting to see what the Federal Reserve (the “Fed”) will decide in its September meeting to avoid high market volatility.

At The Family Office, we still seek downside protection in terms of asset allocation amid the current volatility, risks, upcoming presidential elections, geopolitical tensions, and corporate earnings announcements. We also focus on potential upside trends, with Japan being one of the countries whose data we monitor, specifically its stocks.

Investors should be open-minded, as they need to manage risks while not missing emerging investment opportunities.

Markets expect the Fed to cut interest rates by 0.5% in its September meeting. However, it’s worth noting that the Fed will not cut rates before seeing a trend of consecutive rate reductions.

Watch the full interview above.