The Bank of Japan meet this week
- Wednesday 26 April 2017 and Thursday 27 April 2017
- In addition to the announcement Thursday we'll also get the latest updated Outlook Report from the Bank
Barclays previewing:
- We expect the BOJ Policy Board to keep current monetary policy intact by a majority vote
- Retain its quantitative easing guideline for base money supply, JPY 80trn/year, which has become difficult to achieve due to a shortage of available JGBs
- In its quarterly Outlook Report, to be released at the end of the meeting, we believe the BOJ is likely to leave its real GDP growth forecasts largely unchanged, while lowering its core CPI projections, especially for Fiscal Year 17
- We expect the BOJ to raise, albeit slightly, its target for long-term yields under the yield curve control (YCC) program in Q3 17
- However, the prospects for such a move depend heavily on: 1) a strong trend in the overseas economy, especially in the US and China; 2) stable financial conditions with share price strength and JPY weakness; and 3) improvements in the inflation environment, including the wage trend
Nomura:
- Expects BOJ policy unchanged
- Says the BOJ will welcome the yen depreciation since French election 1st round result
