Summary of bank desk views ahead of........>

BOJ VIEW: Summary of bank desk views ahead of today's BOJ MonPol decision (1/2)

- ANZ: We don't exp. any change, given that the Bank is set to downgrade its

inflation view. Moreover, any policy tweak could be misinterpreted as a step

toward normalisation. A signal the BoJ would be reluctant to send now, with

inflation far from target.

- BofAML: We exp. the BOJ to take actions that would send a clearer signal that

it will tolerate further steepening in the 10+year segment of the curve, for

example by 1) dropping the Y80tn quantitative "guideline" from the 30-31 July

policy statement and 2) lowering purchase floors for its monthly JGB purchase

operation guidelines (due 5pm JST on 31 July).

- Barclays: We believe significant policy changes are unlikely, although the

BOJ's language could open the door to future tweaks at the operational level. We

retain our outlook for normalization (shortening of sector targeted for yield

control) to begin from April 2019.