A sources story from Reuters
BOJ may debate deepening negative rate and offer new forward guidance on the future policy path
- Will release analysis showing that lowering yields of JGB's of up to 10 years will have a bigger effect in boosting the economy than reducing longer-dated yields
- May use gap between real interest rate and neutral rate of interest to measure the degree of the easing effect
- No consensus within the BOJ on whether to offer numerical guidance on desirable long-term rate levels
The details in this are pretty similar to the story the Nikkei ran yesterday.
In a normal world you'd expect to see this news as yen positive. Yesterday that didn't happen but the more this news is circling now the more it could be behind some of the yen strength we're currently seeing. USDJPY has been on the wonk since early European trading, falling to a new low just now of 102.43 from up above 103.00.
The story mill just keeps churning them out and it's going to be that way all the way through to the meeting next week.
