Mizuho On Today’s BOJ Decision

Mizuho notes: "There are reports the Bank may upgrade its economic forecast, probably because economic activity is gradually pulling out of its pandemic-triggered contraction. Meanwhile, the Bank's coronavirus funding operations and the higher ceiling on its purchases of corporate bonds and commercial paper are set to continue until March 2021, and we expect it will remain in "crisis mode" at least until next spring. We project policy will be left on hold at the upcoming meeting. We do not expect Board members to begin seriously discussing an early exit from crisis mode, and at the same time we see little reason for the BOJ to extend these programs or increase their size so soon. Governor Kuroda's press conference is therefore unlikely to contain any market-moving information."