Bank of Japan set to disappoint markets

This week's focus will be on the Bank of Japan's Policy Board meeting, which concludes on Tuesday. Hopes of further monetary easing are high, but we see two risks. The first is simply that the Bank does nothing. preferring to wait until the end of the month or later in the fourth quarter. The other is that it does ease again this week, but limits itself to yet another extension of the special funds-supply operation. The markets may dismiss this as "more of the same".