Business / Economy Apr 20, 2023
Most BOJ watchers expect Ueda to hold policy at first meeting
Almost 40% of economists see June as the most likely time for a policy change, largely in line with the previous survey last month.
Almost 40% of economists see June as the most likely time for a policy change, largely in line with the previous survey last month.
Some 41% of BOJ watchers expect a tightening step to take place in June according to a recent survey.
While a survey of 43 economists showed all but one predicting the central bank to leave policy unchanged next week, some 38% of respondents now forecast moves either in April or June.
All 47 economists polled expect no change in the BOJ’s negative interest rate and yield curve control program at the end of the two-day gathering on Dec. 20.
Most BOJ watchers are convinced Kuroda won’t raise rates to cool the rapid weakening of the yen.
Most analysts said that a further acceleration to 3%, the highest since 1991 excluding tax-hike years, wouldn’t increase the likelihood of policy change before Kuroda’s term ends in April.
Despite a further slide in the yen this week and central banks around the world continuing to surprise with outsized rate hikes, some see the BOJ cementing its outlier status even further.
The new spending would come as Suga looks to shore up support amid widespread dissatisfaction with his handling of the virus and a vaccine rollout that’s lagged other developed nations.
All but one economist projected the BOJ will make no change to its interest rates, forward guidance or key asset-purchase program.