According to Tom Kenny, Senior Economist at ANZ, recent media speculation about a change in policy – owing to concerns over the sustainability of the BoJ’s current policy framework – has turned next week’s monetary policy meeting into a market event.
Key Quotes
“We don’t expect any change, given that the Bank is set to downgrade its inflation view. Moreover, any policy tweak could be misinterpreted as a step toward normalisation. A signal the BoJ would be reluctant to send now, with inflation far from target.”
“The issue of policy sustainability remains, but the Bank has time to take a considered approach on how best to manage any policy adjustments to address these concerns.”
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