BoJ will keep its monetary policy unchanged on Tuesday - ANZ

Analysts at ANZ published their thoughts on what to expect from Tuesday’s Bank of Japan (BoJ) monetary policy decision and its impact on the USD/JPY pair.

Key Quotes:

“Speculation about policy tightening from the Bank of Japan has gained momentum; especially, since it reduced its purchases earlier this month.

However, we think that cutback was merely a reaction to the recent flattening of the super-long JGB yield curve. As such, we think the BoJ will keep its monetary policy unchanged at its next meeting and reiterate its commitment to the yield curve control.

This could take pressure off USD/JPY.”