Via Barclays on what to expect from the BOJ meeting (Wednesday and Thursday, Japan time)

  • 20-21 December.

We expect the BoJ to retain current policy by a majority vote.

  • That said, CPI inflation continues to lag GDP growth, and how the BoJ manages its policies centered on YCC will remain in the spotlight.
  • One focal point will be whether Policy Board member Kataoka, who highlighted the effectiveness of easing policies at the last meeting, proposes any concrete actions.
  • In his post-MPM press conference, Governor Kuroda will have a chance to express his views on any proposals for further easing and, indeed, speculation around the prospect of normalization