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Needle Still Points South


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Heading North


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Economists Survey Raises 2021 CPI Forecast To 4.9%

BOJ VIEW: *** Bank desk views ahead of today's MonPol decision 2/2
- Deutsche Bank: We expect the BoJ to maintain its current policy stance, even
with two new Deputy Governors participating in the meeting for the first time.
They expect that the Outlook Report will reaffirm the previous forecasts for
real GDP growth and core CPI inflation in FY18 and FY19.
- Nomura: We expect the BOJ to leave monetary policy unchanged. At the
governor's post-meeting press conference, we expect questions on the JPY80trn
annual JGB purchase target, the need to continue ETF purchases, and the
possibility of raising the target for long- and short-term interest rates under
YCC. With the new line-up of deputy governors we are interested - from the
perspective of gauging the policy stance - to see whether or not the tone of
their answers to these questions changes.
- TD: The BoJ is in no rush to tighten policy given benign inflation, soft
household spending and weak wage growth. Nonetheless, the BOJ may be encouraged
by the fact that headline and core CPI are creeping higher. Although in no rush
the BoJ is discussing potential exit opens.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |