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BOJ Expected to Hold Firm Even as Economists Flag 130 Yen Level

  • Some 45% of analysts now see some policy action by year-end
  • Around 84% see inflation hitting 2% at some point this year
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WATCH: Ray Sharma-Ong, investment director for multi-asset solutions at abrdn plc, discusses the outlook for currencies including the dollar and yen.  Source: Bloomberg

The Bank of Japan is widely expected to stand pat next week even as speculation grows that it might adjust policy before the end of the year to account for the weakening yen, with economists flagging the 130 mark against the dollar as a key level.

Some 89% of 45 analysts forecast no change in the central bank’s settings for interest rates and asset purchases at the end of a two-day meeting next Thursday, according to the poll. For the first time in a while, some 11% predict a shift in forward guidance in the direction of tightening policy.