The Bank of Japan July monetary policy announcement is today, accompanied by an updated Outlook report
Announcement will come around 0230GMT (there is no set time, check this out:
)
From Goldman Sachs (in brief):
BOJ could implement a higher yield target for 10 year JGBs
- this would be strengthen yen the most
Or the Bank could widen the band of permitted movement for the 10 yr (which would still strengthen the yen, but not by as much)
GS nominate the most likely outcome as BOJ instructing staff to consider sustainability adjustments in September.
- would be yen supportive, lays groundwork for policy change later in 2018
- "Under this outcome, USD/JPY may decline somewhat further as investors build in expectations for a change in the autumn"
BOJ may announce smaller changes (and thus be less yen supportive) such as minor alterations in the bank's asset purchase program, eg:
- change structure of ETF purchases
- remove the reference to the 80tln yen annual JGB purchase target
--
previews already:
- Here is how the BOJ could change policy (while sneakily announcing no change in policy)
- What to expect from USD/JPY after the BOJ meeting this week
And:
