Bank of Japan Watch Policy settings under threat but BoJ won’t yield Despite coming under significant pressure in both bond and currency markets in recent weeks, the Bank of Japan will not respond to inflation reaching its 2% target by hiking its short-term policy rate... 21st April 2022 · 8 mins read
Bank of Japan Watch 2% inflation wouldn’t be enough for rate hike While the war in Ukraine will lift Japanese inflation to the Bank of Japan’s 2% target, continued weakness in wage pressures and underlying inflation mean that the Bank won’t respond with a rate hike... 10th March 2022 · 8 mins read
Bank of Japan Watch Shrinking balance sheet won’t lead to tighter policy While Omicron is likely to intensify input price pressures, most Japanese firms will continue to absorb those costs in their margins, ensuring inflation stays well below the Bank’s 2% target. And in... 12th January 2022 · 8 mins read
Bank of Japan Watch BoJ to extend Covid aid, won’t lose control of yields While renewed virus restrictions are unlikely to be deflationary, we think Omicron fears will prompt the Bank of Japan to err on the side of caution and extend its emergency corporate funding measures... 9th December 2021 · 8 mins read
Bank of Japan Watch Bank to look through weaker yen and supply shortages Sitting comfortably with continuity candidate PM Kishida in charge, the Bank of Japan won’t alter its major policy settings at its October meeting. And we doubt the Bank will respond with policy... 21st October 2021 · 8 mins read
Bank of Japan Watch PM frontrunner Kono may favour sharper taper Dug in for an extended hold, the Bank of Japan won’t alter its major policy settings at its September meeting. Further ahead though, PM Suga’s successor – to be elected in two weeks’ time – may look... 16th September 2021 · 8 mins read
Bank of Japan Watch New climate change facility not a game changer At its July meeting we expect the Bank of Japan to outline that it will offer interest-free loans to banks under its new fund-provisioning measures aimed at addressing climate change. Beyond that... 9th July 2021 · 8 mins read
Bank of Japan Watch Asset purchases to remain low but rates on hold At its June meeting we think the Bank of Japan may extend the deadline on its emergency lending facility from September to December. Beyond that point, it should further taper its purchases of short... 11th June 2021 · 8 mins read
Bank of Japan Watch Bank preparing for prolonged hold After tweaking a range of policy measures in March, the Bank of Japan will keep policy settings unchanged in April. By addressing the side effects of ultra-loose policy, the Bank has set the stage for... 20th April 2021 · 8 mins read
Bank of Japan Watch Bank likely to defer widening of tolerance band The pendulum seems to have swung back against the Bank of Japan making any changes to its yield target next week or indeed any major changes at all. That is most likely because the Bank doesn’t want... 11th March 2021 · 8 mins read
Bank of Japan Watch Bank unlikely to ease more in response to virus wave The Bank of Japan is unlikely to respond to the worsening virus outbreak with additional stimulus. However, policymakers may provide some hints at the upcoming meeting about what to expect from the... 14th January 2021 · 8 mins read
Bank of Japan Watch Bank to extend lending programmes With the ongoing wave of infections in Japan the most severe yet, the Bank of Japan will probably extend its lending facilities beyond March 2021 at the upcoming meeting. But we don’t expect it to... 10th December 2020 · 7 mins read
Bank of Japan Watch Bank to maintain expansionary status quo The Bank of Japan may revise down its GDP growth and inflation forecasts slightly at the upcoming meeting. However, we doubt it will respond with additional policy easing. Its assets are already... 21st October 2020 · 8 mins read
Bank of Japan Watch Rate cuts still a remote scenario The Bank of Japan will leave policy settings unchanged at the upcoming meeting. And while the frontrunner to be the country’s next prime minister has indicated that he sees scope for further stimulus... 9th September 2020 · 8 mins read
Bank of Japan Watch BoJ to stay the course The Bank of Japan is likely to leave policy settings unchanged over the coming months as strains on financial markets have eased and loan demand has started to slow again. 8th July 2020 · 8 mins read
Bank of Japan Watch Bank may expand lending programmes further The Bank of Japan has already done a lot to ensure the availability of funding of non-financial firms, but we suspect it may go a little further at the upcoming meeting. 9th June 2020 · 7 mins read