An analyst at Daiwa in Japan is dismissing the idea of a January Bank of Japan policy pivot.
- Its “quite unlikely” the BOJ will move away from negative short term rates at the January meeting.
- Arguing that a monetary tightening would not help the economy, tightening is “not really desirable in theory”
- What the BOJ will do though, “I think the BOJ will lay the groundwork for banks to make preparations (for a change)”
I posted earlier on UBS not expecting much form the Bank of Japan either:
ICYMI, the BOJ heald steady its meeting this week:
- ForexLive Asia-Pacific FX news wrap: BOJ policy left unchanged, JPY weakened
- ForexLive European FX news wrap: Yen extends post-BOJ fall, dollar lower alongside yields
This article was written by Eamonn Sheridan at www.forexlive.com.