BoJ: Do not expect the bank to ease monetary policy – Danske Bank

Research Team at Danske Bank, suggests that today in Japan, all eyes to be on the comprehensive assessment due to be conducted by the Bank of Japan (BoJ) for any indications of a change in the monetary policy framework and/or additional monetary easing.

Key Quotes

“We do not expect the BoJ to ease monetary policy as such. However, we expect it to adjust its policy framework by abandoning calendar-based communications on when it expects to reach the 2% target and instead pursue 2% inflation 'at the earliest possible stage'. We expect the BoJ to maintain its negative interest rate policy and keep the door open for additional rate cuts in the future. In addition, we expect the BoJ to adopt a more flexible approach with its quantitative target for annual increases in the balance of JGB purchases.”