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MNI GLOBAL WEEK AHEAD - BoJ Decision, UK CPI and EM CBs

This week is highlighted by the BoJ on Tuesday.

TUESDAY: BOJ DECISION

While certain investors interpreted recent statements from Bank of Japan (BOJ) officials regarding exit scenarios as a sign of an imminent shift away from yield curve control, we are inclined to view it as a strategic step in the extended process of preparing for a seamless transition, likely occurring around mid-year next year. Consequently, we anticipate the BOJ to maintain its current stance, including at the upcoming meeting next week, which marks the last for 2023. Regarding the Negative Interest Rate Policy (NIRP), we anticipate the BOJ to maintain its short-term rate at -0.1% next week but with the expectation for it to end in 2024. This outlook is in line with the latest Reuters poll, where 84% of surveyed economists anticipate the BOJ to cease NIRP in 2024, compared to 71% in the November poll and 54% in October.

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TUESDAY: BOJ DECISION

While certain investors interpreted recent statements from Bank of Japan (BOJ) officials regarding exit scenarios as a sign of an imminent shift away from yield curve control, we are inclined to view it as a strategic step in the extended process of preparing for a seamless transition, likely occurring around mid-year next year. Consequently, we anticipate the BOJ to maintain its current stance, including at the upcoming meeting next week, which marks the last for 2023. Regarding the Negative Interest Rate Policy (NIRP), we anticipate the BOJ to maintain its short-term rate at -0.1% next week but with the expectation for it to end in 2024. This outlook is in line with the latest Reuters poll, where 84% of surveyed economists anticipate the BOJ to cease NIRP in 2024, compared to 71% in the November poll and 54% in October.

Keep reading...Show less