Next Tuesday, the Bank of Japan (BoJ) will have its monetary policy meeting. Analysts at Wells Fargo do not expect any major changes in BoJ policy in the near term.
Key Quotes:
“The Bank of Japan (BoJ) held its main policy rate steady at -0.10% at its December 19 policy meeting, and outlined its rules for the ETF lending program, which was first announced in April. The BoJ sounded a bit more upbeat on the global economy and noted that the domestic economy has been showing “a moderate expanding trend.” We do not expect the BoJ to make any major changes to policy in the near future, especially now that a fiscal easing package has been announced to counter a slowdown in the economy.”
“On the price front, the BoJ made little changes to its inflation expectations, even though inflation remains well below the central bank’s 2% target. In November, headline prices rose 0.5% year-over-year, likely in part due to the October sales tax increase, despite education costs declining 7.8% after free preschool education started in October.”
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