Two strategists in OCBC Bank’s research unit say any change to the Government
Pension Investment Fund’s asset allocation is unlikely to happen quickly after
comments by Japan’s finance minister Katayama last Friday. They said such a
shift would "require broad government coordination," and doubted it "alone would
be sufficient to address core fiscal concerns or change perceptions that the
Bank of Japan remains behind the curve." They added the yen’s decisive shift
from a funding currency to an investment currency would "likely require more
fundamental policy changes."
