BoJ: Expectations of announcing more easing this week are sky high – Danske Bank

Research Team at Danske Bank, suggests that the expectations on the BoJ announcing more easing this week are sky high with 32 out of 41 analysts calling for more easing, according to a Bloomberg survey.

Key Quotes

“This is the highest share in more than the three years that Kuroda has been governor. We also expect the BoJ to react to sluggish growth, low inflation and the strong JPY appreciation seen this year by cutting rates by 20bp to -0.30% and to fine-tune its qualitative asset purchases towards riskier assets.

A fiscal stimulus package is likely to supplement monetary easing in the coming weeks, in our view, although Kuroda has ruled out 'helicopter money' repeatedly in the aggressive form where the BoJ directly underwrites government bonds.”