BoJ Interest Rate Decision

"The Bank of Japan's Moment of Truth: Decision Day Guide"

 

BOJ Interest Rate Decision - Dec 20, 03:00 GMT: The Bank of Japan interest rate decision is due out in the early hours with investors keen to see whether there will be an increase in the record scale of its asset purchases or a further cut in negative interest rates.

By not reacting to either of the above in recent meetings, we have seen a fall in consumer prices and by not acting during this meeting will further increase concerns that the BOJ's tools are worthless against their limitations.

Any disappointment from this meeting will trigger the appreciation of the yen and will make the BOJ’s job of reaching its 2 percent inflation target even more difficult and therefore, the BOJ’s most likely choice for any move will be to push its key interest rate further into negative territory, this move could soften the currency and underpin Japanese shares.

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