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The Goldman Sachs analysts offer a detailed preview of what to expect from the Bank of Japan (BOJ) monetary policy review meeting that concludes on March 15th.

Key Quotes:

“We expect the BOJ to maintain the status quo in all categories of monetary policy

Specifically, we expect the BOJ to maintain its short-term policy rate target of -0.1% and 10-year yield target of 0% (leaving the band for 10-year yields at ±20 bp) and make no changes to its program of ETF and other risk asset purchases.

Also, we expect the BOJ to maintain its long-term JGB purchase guideline of increasing its net holdings at a pace of about ¥80 tn per year.

Discussion at the meeting will focus on evaluating January data, especially production and export data, which were notably weak

The BOJ will likely need to lower its production and export assessment,  in our view, while it is likely to maintain its overall economic assessment.”