Just a few months ago, a sizeable number of analysts were expecting the Bank of Japan to provide more stimulus at the upcoming meeting, but only a few are still holding on to that view. We expect that the Bank will merely confirm at this week’s meeting that QQE will be extended in its current form for at least another year. But that does not mean that further easing is off the table. The economic recovery remains sluggish, and price pressure has moderated. What’s more, the recent plunge in crude oil prices provides yet another reason to increase the pace of asset purchases. We still think that this will happen in April, but an earlier announcement in January is certainly possible.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services