What’s the BOJ going to do, according to big investment bank analysts
After reading analysis from 3 investment banks I would suggest that the BOJ will do nothing. Contrary to reports in the Nikkei, all 3 analysts feel that the BOJ will maintain it’s present stance.
- They may stress the slowdown in domestic, regional and global economies.
- A downward revision of growth and inflation forecasts is also quite likely.
- The Asset Purchase Program may possibly be expanded by up to JPY10 trillion and/or the time-frame could be extended.
It feels to me that the market is pricing in the latter, at the very least, so anything less will be a disappointment and would lead to some JPY short-covering.