Dovish BOJ expectations fall sharply – Reuters poll

Dhwani Mehta FXStreet

The latest Reuters poll revealed a major shift in the monetary policy outlook of the Bank of Japan’s (BOJ), mainly in response to signs of easing US-China trade tensions and the recent Yen’s strength.

Key Findings:

“The survey, taken Nov. 6-12, found that 23 of 41 economists, or 56%, expect the BOJ’s next step will be further easing, down sharply from 85% in last month’s poll.

By contrast, 18 economists, or 44%, believe unwinding stimulus will be the BOJ’s next course of action, a dramatic jump from just six economists in the previous survey.

All 18 said the BOJ’s unwinding of stimulus would come in 2021 or later.

Those who expect further easing forecast a wide range of timelines, including four saying said it could happen as early as December and seven saying not until at least 2021.

Asked what dollar/yen level would prompt the BOJ to ease further, about 67% of the economists said when the yen strengthened beyond 100 yen against the dollar.”

BOJ’s Kuroda: Important for Japan to ensure it has market's trust in medium, long-term fiscal health

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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