BOJ: Pressure to act now has very recently lightened up – Scotiabank
|The Scotiabank Research Team is out with a brief preview of what to expect from Thursday’s Bank of Japan (BOJ) monetary policy decision.
Key Quotes:
“Some of what had been building momentum toward potential policy adjustments by the Bank of Japan has abated given recent bond market movements. … The recent correction in global bond yields has carried the JGB yield up with it and brought it back within the target range. That may lessen pressure upon the BoJ to perhaps lower its negative policy balance rate (-0.1%) and try to engineer upward pressure upon longer-term yields after Governor Kuroda guided that bond yields had declined "a bit too far."
Ahead of a planned sales tax hike next month and still very weak inflation that will be updated again toward the end of the week, the BoJ may keep stimulus thoughts in mind but the market pressure to act now has very recently lightened up somewhat.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.