BoJ could spring another surprise

With economic activity sluggish and inflation slowing, we think it is a question of when rather than if the Bank will step up the pace of its asset purchases. Mr Kuroda has given no hint recently – including at the Bank’s meeting earlier this month – that more action might be imminent. But the governor has a record of springing surprises and we still think that policymakers will announce more stimulus this week to signal their commitment to the 2% inflation target.