BOJ Review Examines Economic Policy Uncertainty Using Earnings Call Texts

Overview of the Publication

The Bank of Japan has published, as part of its "Bank of Japan Review" series of public relations and research materials, a paper titled "Examining Economic Policy Uncertainty Using Corporate Earnings Briefing Texts." From the title, it appears to be a document that analyzes what companies said at their earnings briefings as text and examines the uncertainty surrounding economic policy.

Points to Note

The announcement provides no summary or excerpt, so the analytical method, the conclusions and any specific figures cannot be confirmed. This article therefore stays within what can be read from the title and makes no speculation about the content.

Economic policy uncertainty is a theme that is taken up when considering corporate activity and the views of market participants. A feature of this document is that a central bank organized this issue using text information, namely corporate statements. Please check the original text published by the Bank of Japan for details.

Notes for EA Operation

This document does not accompany any specific indicator release or policy decision, but communications on monetary policy and economic policy can affect market views. Price movements tend to become volatile before and after important announcements or statements by key figures, and spreads may widen, so it is advisable to consider in advance whether to pause EA operation. Lot sizes and stop widths should also be reviewed with a margin of safety.