The Central Bank of Japan won’t change its monetary policy and will reduce the inflation forecast
Most likely that the Bank of Japan will refuse to expand stimulus measures next week. This will happen in spite of expectations of the poor price outlook, which can indicate that inflation will not reach the 2 -percent target until the end of the term of tenure of office of the head of the regulator Haruhiko Kuroda.
Board of Governors (9 officers) may also discuss a number of operational details of the monetary policy, which was reconsidered in September. For example, by how much the Central Bank can slow down buying bonds if the yield falls below the target level.
In October Reuters reported that the Japanese central bank was likely to lower the inflation forecast for the next fiscal year in its quarterly report due to the weakened consumption, and the fall of import prices because of the strengthened yen.
Despite the fact that the overall uncertainty reigns, which is also related to the results of the presidential elections in the US, the central bank fixes not a lot of risks, which could be an obstacle to the moderate recovery of the country’s economy.
“The decline of the Bank of Japan’s forecast regarding the inflation will not necessarily lead to the further policy easing” – stated a source familiar with the situation.