BOJ Preview: Kuroda to suggest ETF purchase tapering as premature - Nomura

Research Analysts at Nomura provide a brief insight on the forthcoming BOJ’s monetary policy decision, expecting a dovish bias from Governor Kuroda.

Key Quotes:

“The BOJ meeting next week is unlikely to have a significant impact on JPY.“

“The Bank is likely to upgrade its economic outlook, but its dovish stance will likely remain intact.

“Governor Kuroda is unlikely to indicate any steps towards the Bank’s exit strategy, including the tapering of ETF purchases yet, which may be welcomed by equity investors.

“As market expectations for easing have declined and concerns about hawkish surprises are likely to exist, JPY may react negatively to Governor Kuroda’s likely dovish policy stance.”