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MNI BoJ Preview - March 2023: End Of An Era, But Not Of YCC

BOJ

A clear consensus looks for no change in BoJ policy settings come the end of outgoing Governor Kuroda’s final policy meeting. Only 3 of the 49 economists surveyed by Bloomberg look for a hawkish policy move this time out. We side with the majority on this. However, the Bank’s recent propensity to shock (see the surprise widening of the YCC band back in December) means that this view is held with varying degrees of conviction.

  • The argument for a widening of the BoJ’s YCC band centres on the continued test of the Bank’s will when it comes to its existing YCC settings, alongside a desire to promote a smooth handover to BoJ Governor-in-waiting Ueda.
  • The upcoming shunto wage negotiations will provide the next key input for the Bank’s policy considerations.
  • Click to view full preview.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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