The BoJ is now expected to refrain from cutting rates further into the negative territory and is seen increasing its bond purchasing programme insteas at the next meeting (Thursday), in opinion of Economist at UOB Group Lee Sue Ann.
Key Quotes
“We still expect the BoJ to do more and enhance its monetary easing stance further in 2H20. However, our long-held view that it will ease via deepening further its negative policy rate is now an increasingly remote possibility.”
“Instead, we think the BoJ will ease via increasing its JGB purchases. It may also expand its lending facilities to Japanese corporates and SMEs while the ETF and corporate bond buying program may be enhanced.”
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