According to analysts at Nomura, end-FY18 (Q1 2019) may be viewed as the BOJ’s last opportunity to adjust policy in the current economic cycle, as the consumption tax hike is scheduled for October 2019 and the economic cycle will mature further.
Key Quotes
“Market expectations regarding the timing of BOJ policy normalisation could change significantly if a policy adjustment is viewed as difficult in Q1 2019. Such a shift in market expectations, which would likely take place in the next few months, would broadly weaken JPY.”
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