BNP posted the preview on the BOJ monetary policy decision due on the cards this session, citing that the BOJ is expected to stand pat today after switching to a yield curve targeting regime at its previous meeting.
Key Quotes via eFX:
“We expect the Bank of Japan to leave policy unchanged at this week's meeting after switching to a yield curve targeting regime at its previous meeting.”
“Our economists note the Bank may abandon numerical guidance on its pace of JGB purchases, but only because the guidance has become superfluous given the new yield curve targets.”
“With the BOJ's new framework now understood by markets, we would not expect a significant reaction to this.“
“The Bank's quarterly outlook may also push back the timing for achieving 2% inflation by a year, again with limited market impact.”
“We view BOJ policy as likely to be a neutral factor for markets heading into 2017, with Fed policy the main driver of USDJPY in our bullish forecasts. We target 108 by yearend.”