BoJ Preview: Plumbing the depths of negative interest rates – RBS

Sandeep Kanihama FXStreet Contributor

Research Team at RBS, suggests that even after the “comprehensive assessment”, we expect only fine tuning of inflation targets and the framework for quantitative and qualitative easing with negative interest rates from the BoJ.

Key Quotes

“In light of the recent inflation situation, we also foresee steps towards additional easing. Specifically, the approach likely to be chosen will take into account financial institution profitability, without making limits to quantitative easing superfluous and avoiding any impression of a pullback in monetary easing.

However, if Governor Kuroda is intent on a surprise, there is some small possibility of a shift to targeting long-term rates.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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