BoJ may push back the timing of its 2% inflation target - ANZ

Research Team at ANZ, suggests that the expectations are that the BoJ may push back the timing of its 2% inflation target making it a more medium-term objective, make QE more flexible in an attempt to steepen the curve, and possibly cut the deposit rate further into negative territory.

Key Quotes

“Whilst all this is speculative, we do know that the BoJ is quite divided on the merits of extending extraordinary monetary measures further given the difficulty that negative rates and a flat yield curve create for the banking and financial sector. So confidence in what the BoJ can implement at the meeting is cautious and recently the BoJ has disappointed markets.”