BoJ: No fireworks expected this time - BBH

Analysts at BBH are not expecting any fresh initiatives from the forthcoming Bank of Japan’s meeting this week.  

Key Quotes

“Governor Kuroda made a big splash when announcing new measures, but he has more quietly modified the program so that the BOJ's balance sheet is growing slower and slightly fewer funds at the BOJ are burdened with a penalty or negative rate.”

“The market has hardly talked about Kuroda's soft exit.  Although there have been periods that required action, the 10-year yield has been mostly stable as global interest rates have risen.  The key drivers for dollar-yen are interest rate differentials (US-Japan 10-year, dictated now by the US side) and equity markets.  Japan's policy of relatively loose fiscal and monetary policy is a given and not a new factor for investors.”