Japan: Policy on hold now but future stimulus inevitable – Deutsche Bank

FXStreet (Delhi) – Jim Reid, Research Analyst at Deutsche Bank, suggests that in today’s monetary policy meet BoJ has made no change to its monthly asset purchasing target, sticking with its ¥80tn annual target after an 8-1 majority but the stimulus for the Japanses economy is inevitable and the sooner they do, the better it is.

Key Quotes

“There has been some speculation that they would increase stimulus today but consensus was that they would stay put for now. The accompanying statement showed that the BoJ continues to see the economy ‘recovering moderately’.”

“We may see an increase in stimulus possibly as soon as the next meeting on October 30th. The latest Bloomberg survey is suggesting that it’s set to be a close call with 42% expecting the BoJ to increase purchases at this meeting.”