BOJ unlikely to tighten policy in January, focus on preparations for banks


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:

This article was written by Eamonn Sheridan at www.forexlive.com.



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