BoJ Preview: Much ado about nothing – ANZ

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.”