The BOJ meet today and tomorrow - the statement will come some time between 0230 and 0300GMT on 19 December 2019.
Via Soc Gen, in summary:
We expect the Bank of Japan to leave the current monetary easing framework unchanged
- bank maintaining a negative interest rate of -0.1%
- continuing to target a long-term (10yr) JGB yield of around 0.0%
The BoJ adjusted its forward guidance at the October meeting
- removed the time-dependent element from its forward guidance,
- shifting completely to data-dependent forward guidance
- at the same time strengthening its easing bias
- Its risk assessment continued to be skewed to the downside for growth and inflation
- Furthermore, it assessed that "the timing of a pick-up in the growth pace is likely to be delayed for longer than expected" for overseas economies.
BoJ … effectively lengthen(ed) its forward guidance at the October meeting
- continued to assess that domestic fundamentals remained strong by maintaining the phrase "expanding trend" in its overall assessment in the latest outlook report
external risks have started to wane since the October meeting
- Uncertainties on global trade and politics in Europe have eased
- economic data are showing signs that growth momentum remains intact
Japan domestic demand remains strong, supported by a tight labour market and continuing capex growth.
- government is set to introduce a large-scale economic stimulus programme next year, which should further help to support growth and accelerate inflation over the medium term.
we expect the BoJ to maintain its overall economic assessment and to judge that there is no need for any additional easing at the present time
