BOJ highly likely to lower its inflation outlook for FY2017 on Thursday – Goldman Sachs

Analysts at Goldman Sachs on what to expect from tomorrow’s BOJ monetary policy decision and accompanied outlook report.

Key Quotes:

“We expect the BOJ to maintain current monetary policy at its July 19-20 monetary policy meeting

On July 7, the BOJ offered to buy an unlimited amount of JGBs, thus keeping the 10-year rate at 0.1% or lower

We see this as a strong signal from the BOJ that it intends to continue a wait-and-see approach, sitting tight until US rates rise significantly

We also think the BOJ is highly likely to lower its inflation outlook for FY2017 in the quarterly Outlook for Economic Activity and Prices”