BoJ likely to maintain its extremely easy monetary policy in the foreseeable future - HSBC

Analysts at HSBC offer a sneak peek at what to expect from the BoJ policy announcement due out any moment.

Key Quotes:

“Underlying inflation pressures have been absent so far, despite positive q-o-q growth for seven consecutive quarters. Strong economic activity is not translating into higher prices, with wage growth showing limited signs of acceleration due to various structural factors.

Consequently, the BoJ is likely to maintain its extremely easy monetary policy in the foreseeable future, as a premature pullback will dampen medium-term inflation expectations and also result in a notable correction in financial market instruments including the value of the yen.

And also on the 'Outlook' report that'll be published by the Bank at the same time as the policy announcement:  

Meanwhile, this is likely to push the Bank's real GDP forecast for FY2018 slightly higher from the current 1.4%. Market participants will be closely watching whether the Bank keeps its optimistic core CPI forecast of 1.4% for FY2018, while we see risks that this could be marked marginally lower.”