Danske Bank analysts are expecting the Bank of Japan (BoJ) to keep the policy rate and yield curve control unchanged at the next monetary policy meeting ending on Thursday 31 October.
Key Quotes
“It is set to make great efforts to highlight its willingness to act if needed.”
“The economy is still solid, which calls for patience considering the limited tools left at the BoJ’s disposal.”
“VAT-hike and global slowdown pose a risk that the economy falls back into deflation.”
“We expect the new projections for GDP and inflation to be revised down.”
“We continue to weigh the structural appreciation pressure (as inflation remains extremely weak) against cyclical trends, which at least in recent months have been in favour of a weaker JPY. We currently target 107 short term.”
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