BoJ: additional easing on the way, Trump poses risks of Yen appreciation - Nomura

Analysts at Nomura offered an insight to their outlooks for the BoJ.

Key Quotes:

"Policy: At the most recent monetary policy meeting, the first following the introduction of the new monetary policy framework in September, the BOJ decided to leave overall policy unchanged, while – in the outlook report released at the meeting – it revised down its inflation forecast and postponed the target date to achieve its 2% target to FY18.

Market expectations of additional monetary easing have been subdued, as participants understand the new framework implicitly reflects the fact that additional instruments for
easing have become more limited. However, we expect that, considering the likelihood of a further decline in inflationary expectations among Japanese households, additional
easing will be necessary. We expect the BOJ to ease at the January 2017 policy meeting, as it tries to boost expectations for higher wage growth in the next year’s Shunto wage negotiations. 

Risks: The main risks are increased protectionism under the Trump administration and any renewed yen appreciation that could accompany it."