I posted a quick preview of the BOJ announcement yesterday (here: Bank of Japan meets 17th and 18th February – no change of policy expected, but what will Kuroda say?).
While we wait, here’s another rundown.
From Reuters: BOJ to hold fire, keep upbeat economic view despite soft GDP
- Bank of Japan is expected to keep monetary policy steady on Tuesday
- Maintain its upbeat view on the economy
- Yesterday’s GDP may heighten pressure on the BOJ in coming months to do more to bolster the economy, analysts say
- The BOJ is likely to stick to its view that growth will accelerate in the first quarter as consumers rush to beat a sales tax hike in April, and that it can weather any subsequent decline in household spending from the higher tax without additional stimulus
“I don’t think the BOJ will adopt additional easing steps as domestic demand is strong and prices are steadily increasing, and as long as the markets are stable,” said Yoshiki Shike, chief economist at Dai-ichi Life Research Institute in Tokyo.
