The Bank of Japan's Moment of Truth: Decision Day Guide
- A slim majority of economists forecasts expansion of stimulus
- Comprehensive review may bring changes to Kuroda’s program
What Can We Expect From the BOJ?
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The Bank of Japan’s two-day policy meeting ends Wednesday, with investors anxiously awaiting the outcome of a comprehensive policy review that may set the future course of Governor Haruhiko Kuroda’s monetary stimulus program.
The biggest questions for many are whether the BOJ is willing to increase the record scale of its asset purchases or to cut its negative interest rate further. By doing neither at recent meetings, even as some consumer prices were falling, Kuroda and his board have fueled speculation that the BOJ’s main policy tools are running up against their limits. Taking little or no action today risks reinforcing that view.