BOJ to keep stimulus unchanged in next policy meeting – BBG Survey

According to the latest Bloomberg Survey, an overwhelming majority of economists believe that the BOJ will make no changes to its monetary policy settings at its monetary policy review meeting next week.

Key finding from the survey:

“In a sign of how much perceptions have changed since the decision last month to shift the focus from expanding the money supply to controlling interest rates, some 35 percent of analysts think that Kuroda’s BOJ is done with adding to stimulus.”

“Just two of the 43 respondents project action next week; in both cases they forecast a cut in the negative interest rate on some commercial bank reserves to minus 0.2 percent.”

“Asked how the central bank may adjust policy at the gathering next week or at future meetings, 27 people in the survey pointed to a reduction in the negative rate, which is currently minus 0.1 percent.”

“The next most popular option was a change in the zero percent target for the yield on 10-year Japanese government bonds, which was chosen by four of the analysts.”