Here's a weekend piece in the Nikkei: BOJ to weigh different approach, but markets wonder what next
In brief the article says:
- The Bank of Japan has signalled it will consider changing its methods for achieving 2% inflation at the September 20 and 21 meeting
- But markets are struggling to figure out what that might entail
Well, yeah. That's about in a nutshell.
You'll remember yesterday Kuroda and PM Abe had lunch together. They do this every 6 months.
Kuroda said after that Abe had "nothing special" to say on monetary policy. Adds the Nikkei:
- This could be taken as a hint that Kuroda had come away with Abe's understanding on the BOJ's upcoming "comprehensive assessment" of its monetary policy.
There is more at that link, above.
Its going to be a matter of paying attention to BOJ utterances over the days ahead of the meeting (for example, this from Mike on Friday: BOJ may use combination of existing policy tools and offer clearer forward guidance)
One thing I've noted in past days is the Bank of Japan seems to have dropped references to the "2 year" timeframe (that, admittedly, they've had for going on 3 (or more?) years now), which to me seems to make further imminent action less likely. Stay tuned ....
