What to expect from tomorrow’s meeting of the Bank of Japan

Tomorrow at the beginning of the day the minutes of the meeting of the Bank of Japan for December will be published. The preservation of the monetary policy of the Central Bank of Japan is expected to be unchanged. The Bank of Japan continues to restrain growth of profitability of the state bonds at zero level, and interest rates are -0.10%.

The main intrigue will be the Central Bank’s comments on inflation, which lags behind Japan’s GDP growth. This can have a very mixed impact on the Japanese economy.

There are also different opinions on the policy of stimulating the economy. So, from the Central Bank of Japan the statements on curtailing stimulus measures are expected due to the monetary policy of the Fed and the ECB. But there are also prerequisites for increasing incentives. This retains some uncertainty about the yen. And therefore the market will seek hints for further monetary policy in the forthcoming report of the Bank of Japan.

Hanzenko Anton