Reuters quotes sources with knowledge of the Bank of Japan’s (BOJ) thinking, as saying that the Japanese central bank is likely to make no changes to its monetary policy settings.
However, the BOJ could signal its readiness to ramp up monetary support, in the wake of mounting risks to its domestic economy amid escalating US-China trade war.
Sources said: “Many BOJ policymakers are wary of using their dwindling policy ammunition any time soon as years of ultra-low interest rates strain financial institutions’ profits.”
One of the sources said: “There may be no immediate need for action. But with uncertainty over the outlook so high, the BOJ would need to think about how to respond if a shock hits the economy.”
BOJ is expected to conclude its two-day rate review meeting on Thursday.
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