This is via the folks at eFX.
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- "The Bank of Japan will announce monetary policy ... for the first time under new Governor Kazuo Ueda. In line with the consensus call, we expect no changes to the policy settings for interest rates and asset purchases. The release of the new outlook report and specifically inflation forecasts will drive a big part of the market reaction. However, there is a possibility that the Boj will tweak forward guidance, in particular, the very last part of the statement which reads, "interest rates to remain at their present or lower levels". It could also possibly drop the "lower levels" bit, ultimately switching to a more flexible approach and laying the groundwork for a policy adjustment in the future," ING notes.
- "With not much priced in in terms of policy shift this summer by the BoJ and given the dollar's weak momentum seen yesterday, USD/JPY looks vulnerable ... We still target 128 for the end of the second quarter," ING adds.
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More here:
- BOJ meet this week - preview - YCC to be abandoned but not until July
- BOJ meeting preview - Deutsche Bank expect a policy revision, 3 scenarios
- Has BOJ Gov Ueda dismissed any change to YCC at this week's policy meeting? Looks like it
And, as posted earlier today:
There is no set time for the BOJ announcement. Past experience would suggest 0230 to 0330 GMT (1030 - 1130pm US Eastern time) is a reasonable time to expect the news. I'd suggest later in that window, if not after that window, is the time to expect.
