### POV: WILL KURODA OPEN PANDORA'S BOX,........>

BOJ: ### POV: WILL KURODA OPEN PANDORA'S BOX, AGAIN?

- The language employed during the BoJ's Sep decision effectively made the Oct

meeting live; will "re-examine economic & price developments at the next MPM."

Kuroda specifically pointed to short- & medium-term rates as a potential method

to loosen policy in a subsequent interview, reiterating the BoJ's preference for

a steeper yield curve & stressing that the Bank had no pre-sets heading into the

Oct decision i.e. would not commit to fresh easing, as he highlighted increased

risks from abroad. Kuroda previously pointed to deeper -ve rates, lowering the

10-Year JGB yield target, lifting asset purchases & accelerating the expansion

of the monetary base as potential easing levers. Recent source pieces have

suggested that at least some at the BoJ want to refrain from easing at the Oct

meeting, with members clearly cognisant of the risks that such a move may bring.

- Base Case: A rate cut, potential tweak of the tiering & YCC measures,

potential for ETF purchases to be adjusted. Lower CPI & GDP outlook in the MPM.

- Dovish Risk: Broader easing touching on more of the aforementioned measures.

- Hawkish Risk: No action, pointing to a willingness to act based on risks.