Central Banks

BOJ Watchers See Earlier Policy Shift After December’s Surprise

  • Hold expected next week, but 38% expect move in April or June
  • Poll shows 76% view wider yield range as step to normalization

Bank of Japan headquarters in Tokyo.

Photographer: Noriko Hayashi/Bloomberg
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Bank of Japan watchers see a policy shift coming much sooner than previously thought, following December’s yield band adjustments that rocked global financial markets.

While a survey of 43 economists showed all but one predicting the central bank to leave policy unchanged next week, some 38% of respondents now forecast moves either in April, when a new governor takes the helm, or in June. That’s a jump from 15% in last month’s poll.