BOJ’s next move to be expanding asset purchases, further rate cut – Abe advisor Honda

Japanese PM Advisor Honda comments crossed the wires, where he stated the next Bank of Japan (BOJ) move is likely to be expansion of asset purchase program and further cut in interest rates.

BOJ shocked the world on Jan 29th by moving rates to negative territory. However, the move failed to prop up stocks and weaken Yen, thus markets have been speculating about a possible expansion in QE program and/or rate cut next week.

Earlier today, Reuters reported the BOJ is likely to stand pat next week.