In the Nikkei overnight, a bit of a run down on what's bugging the Bank of Japan and what they might do about it

I've picked out a few points, and bolded a few:

  • The BOJ sees spring wage negotiations and corporate price policies for the coming fiscal year as crucial
  • The rise in the consumer price index excluding fresh food languishing around zero, companies and households are growing skeptical about the likelihood of inflation
  • The global stock rout and strengthening yen have dampened business sentiment, and thus concerns that companies will shy away from the wage hikes and capital spending
  • BOJ may be forced to extend the time frame for achieving its 2% inflation target, now aimed for around the second half of fiscal 2016, to fiscal 2017 or later
  • Current uncertainty is rooted in overseas factors, such as China
  • European Central Bank has signaled that further easing may come in March, skeptics within the BOJ argue that acting alone will have only a limited impact

Some also note that the central bank has been buying 80 trillion yen ($673 billion) a year in Japanese government debt under the current qualitative and quantitative easing program, and that the market will be exhausted in two or three years. They contend that more easing would just bring the BOJ to that limit faster.

Even if Gov. Haruhiko Kuroda submits such a proposal Friday, multiple board members will likely vote against it.

The most likely easing measure would be expanding JGB purchases to between 90 trillion yen and 100 trillion yen annually. The BOJ also could accelerate its buying of exchange-traded funds, which now total 3 trillion yen a year. Some see the bank trying to refute the argument that it has limited room to maneuver by implementing new measures, such as cutting the 0.1% interest on deposits at the central bank to near or below zero.

And ... something like what I'd write:

The central bank will carefully weigh the pros and cons.

Yo, thanks a lot for that :-D

And something I wouldn't write:

Financial markets anticipate more stimulus. Stocks could sink and the yen could strengthen if the BOJ disappoints investors.

On the contrary, market expectations are strongly titled toward no change in policy today

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I've posted up a few previews and such for the BOJ:

  • Bank of Japan monetary policy meeting today and Friday
  • BOJ meeting - preview from BoA/ML

And before the announcement:

  • Economic data due from Japan