BOJ expectations

Author: Sean Lee | Category: News
  • The BOJ meeting will end sometime early-to-mid-afternoon Tokyo time.
  • The target interest rate will remain at 0.0% to 0.1%
  • Markets have already priced in around JPY5 trillion in fresh asset buying
  • Some expect that the amount could be as high as JPY10 trillion
  • BOJ may also buy longer term JGBs

There have been some mixed messages from the BOJ in recent weeks and ‘market neutral’ seems to be JPY5 trillion over some longer timeframes. JPY 5 trillion over shorter timeframes will probably see the JPY strengthen in short-term whereas JPY10 trillion and longer timeframes will see the Yen weaken.