Board downplaying dangers of soft domestic demand

The Bank of Japan’s Policy Board will conclude its September meeting next Wednesday (19th), and is likely to leave policy settings unchanged despite concerns about the economic environment. The fact that policymakers in China, the euro-zone and (almost certainly) the US will all recently have announced additional stimulus might actually reduce the pressure on the Bank to act too, as Board members could argue that others have already done enough to ease the global headwinds facing Japan’s economy.