With economic growth strengthening recently, a slim majority of analysts now expects the Bank of Japan to start tightening policy by the end of next year. But stronger growth has failed to generate price pressures – in fact, the Bank looks set to revise down its inflation forecast for this year at the upcoming meeting. And with outspoken hawks soon to leave the Policy Board, we remain comfortable in our view that the Bank will leave its policy rate as well as its 10-year yield target unchanged for the foreseeable future.
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