Bank of Japan Seen Keeping Policy on Hold as Economy Picks Up

The Bank of Japan is set to keep policy on hold this week, refraining from adding to the unprecedented easing unveiled in April, a Bloomberg News survey of economists shows.

All 32 economists said that officials will refrain from acting at the two-day meeting which begins today in Tokyo.

Japan’s economy has expanded for three straight quarters and inflation was the fastest since 2008 in July, largely because of increased costs for imported energy. Capital spending data released this week pointed to a likely revision upward of second-quarter gross domestic product.

===============================================================================
                                 Monetary    JGBs   ETFs  JREITs     Excess
Economist & Firm                Base(Tln)   (Tln)  (Tln)   (Bln)    Reserve
===============================================================================
                                -------Annual Target (JPY)-------
Current BOJ Target                  60~70      50      1      30       0.1%
-------------------------------------------------------------------------------
Masayuki Kichikawa                  60~70      50      1      30       0.1%
Bank of America Merrill Lynch
===============================================================================
                                 Monetary    JGBs   ETFs  JREITs     Excess
Economist & Firm                Base(Tln)   (Tln)  (Tln)   (Bln)    Reserve
===============================================================================
Ryutaro Kono                        60~70      50      1      30       0.1%
BNP Paribas SA           
Marcel Thieliant                    60~70      50      1      30       0.1%
Capital Economics        
Kiichi Murashima                    60~70      50      1      30       0.1%
Citigroup Inc.           
Kazuhiko Ogata                      60~70      50      1      30       0.1%
Credit Agricole          
Hiromichi Shirakawa                 60~70      50      1      30       0.1%
Credit Suisse Group AG   
Hideo Kumano                        60~70      50      1      30       0.1%
Dai-Ichi Life Research   
Mitsumaru Kumagai                   60~70      50      1      30       0.1%
Daiwa Institute of Research
Maiko Noguchi                       60~70      50      1      30       0.1%
Daiwa Securities         
Naohiko Baba                        60~70      50      1      30       0.1%
===============================================================================
                                 Monetary    JGBs   ETFs  JREITs     Excess
Economist & Firm                Base(Tln)   (Tln)  (Tln)   (Bln)    Reserve
===============================================================================
Goldman Sachs            
Izumi Devalier                      60~70      50      1      30       0.1%
HSBC Holdings PLC        
Yoshimasa Maruyama                  60~70      50      1      30       0.1%
Itochu Corporation       
Takuji Okubo                        60~70      50      1      30       0.1%
Japan Macro Advisors     
Hideki Matsumura                    60~70      50      1      30       0.1%
Japan Research Institute 
Masaaki Kanno                       60~70      50      1      30       0.1%
JPMorgan Chase & Co.     
Yuichi Kodama                       60~70      50      1      30       0.1%
Meiji Yasuda Life Insurance
Jun Ishii                           60~70      50      1      30       0.1%
Mitsubishi UFJ MS Securities
Yuji Shimanaka                      60~70      50      1      30       0.1%
Mitsubishi UFJ MS Sec. BCR
===============================================================================
                                 Monetary    JGBs   ETFs  JREITs     Excess
Economist & Firm                Base(Tln)   (Tln)  (Tln)   (Bln)    Reserve
===============================================================================
Hajime Takata                       60~70      50      1      30       0.1%
Mizuho Research          
Yasunari Ueno                       60~70      50      1      30       0.1%
Mizuho Securities        
Naoki Murakami                      60~70      50      1      30       0.1%
Monex Inc.               
Yasuhide Yajima                     60~70      50      1      30       0.1%
NLI Research             
Naka Matsuzawa                      60~70      50      1      30       0.1%
Nomura Securities        
Takeshi Minami                      60~70      50      1      30       0.1%
Norinchukin Research     
Junko Nishioka                      60~70      50      1      30       0.1%
Royal Bank of Scotland Group PLC
Makoto Suzuki                       60~70      50      1      30       0.1%
Okasan Securities        
Akio Makabe                         60~70      50      1      30       0.1%
===============================================================================
                                 Monetary    JGBs   ETFs  JREITs     Excess
Economist & Firm                Base(Tln)   (Tln)  (Tln)   (Bln)    Reserve
===============================================================================
Shinshu University       
Mari Iwashita                       60~70      50      1      30       0.1%
SMBC Nikko Securities    
Takuji Aida                         60~70      50      1      30       0.1%
Societe Generale         
Izuru Kato                          60~70      50      1      30       0.1%
The Totan Research       
Kazuhiko Sano                       60~70      50      1      30       0.1%
Tokai Tokyo Securities   
Daiju Aoki                          60~70      50      1      30       0.1%
UBS Securities           
===============================================================================

To contact the reporters on this story: Masahiro Hidaka in Tokyo at mhidaka@bloomberg.net; Isaac Aquino in Tokyo at iaquino1@bloomberg.net; Toru Fujioka in Tokyo at tfujioka1@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

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