REPEAT: POV: BOJ TO STAND PAT AFTER PREVIOUS....>

BOJ: REPEAT: POV: BOJ TO STAND PAT AFTER PREVIOUS TWEAKS

- The BOJ will almost certainly leave its Monetary Policy settings unchanged at

the end of its latest meeting on Wednesday, even though the Bank is more

concerned about downside risks to a continued modest domestic economic recovery

amid the uncertainty over global demand.

- The Bank's most recent decision saw it widen the permissible trading band for

the 10-Year JGB yield (to -/+0.2% from -/+0.1%). The measure has stabilised in

the low double digit bp area following the vol. heading into & following the

most recent decision, which resulted in the BOJ conducting unscheduled Rinban &

fixed rate operations.

- Central View: Unch., Kataoka set to remain the dovish dissenter, with the BOJ

not wanting to rock the boat ahead of the ruling LDP Party's leadership elex.

- Dovish Risk: Increased worry around the trade war situation ahead of the

domestic sales tax hike scheduled for 2019.

- Hawkish Risk: Focus on the BOJ streamlining its Rinban (in the same way it has

done in Sep owing to "calendar effects") to promote additional flexibility.