MNI BRIEF: Attention Shifts To BOJ Uchida's Speech Tone Thursday

Market participants will focus on Bank of Japan Deputy Governor Shinichi Uchida's presentation to business leaders Thursday for any shift in tone that could quell expectations of a March policy shift.

Policymakers' positive views on the removal of negative rates, published in the recent January meeting opinions, has fuelled speculation the Bank could adjust policy in March.

BOJ Governor Kazuo Ueda in January highlighted the BOJ’s progress toward achieving the bank’s 2% price target but he gave no hints on whether the bank would remove the negative interest rate at its upcoming meetings in March or April.

Should Ueda hold March policy change in mind, Uchida will hint at it. However, an absence of March will reinforce market expectations of April policy change when the BOJ updates the medium-term inflation view, including the first forecast of fiscal 2026.

While policy change in April after the release of crucial wage data, including the BOJ Tankan survey and the quarterly branch managers’ meeting, are most likely, a March move cannot be completely ruled out, MNI reported. (See MNI POLICY: BOJ May Consider March Policy Change On Strong Data)