BOJ unlikely to tighten policy in January, focus on preparations for banks

An analyst at Daiwa in Japan is dismissing the idea of a January Bank of Japan policy pivot.

• Its “quite unlikely” the BOJ will move away from negative short term rates at the January meeting.
• Arguing that a monetary tightening would not help the economy, tightening is "not really desirable in theory"
• What the BOJ will do though, “I think the BOJ will lay the groundwork for banks to make preparations (for a change)”

I posted earlier on UBS not expecting much form the Bank of Japan either:

• UBS analysts caution against getting too excited about the Bank of Japan doing anything

ICYMI, the BOJ heald steady its meeting this week:

• ForexLive Asia-Pacific FX news wrap: BOJ policy left unchanged, JPY weakened
• ForexLive European FX news wrap: Yen extends post-BOJ fall, dollar lower alongside yields