Preview – Bank of Japan meeting this week – no change to policy expected

Citi on the Bank of Japan meeting this week (October 30 – 31). The market view is for no change to policy at this meeting.

Citi, too, is tipping no policy change.

• we share the widely held view that policy will be left unchanged
• consensus is a rate hike in either December or January

Citi are forecasting December

• we do not expect the BoJ to signal for it vigorously in October given uncertainty around the approaching US election and payroll data
• BoJ will likely emphasize the continued trend of rate hikes while pointing to external uncertainty

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I suspect the Japanese election result last weekend may shift views to January for the next BoJ rate hike soon enough.

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