Reported 7 months ago
The Bank of Japan is expected to keep interest rates at ultra-low levels but may consider reducing its large balance sheet, gradually moving away from massive monetary stimulus. Concerns arise due to weak consumption and uncertainty regarding the central bank's belief that strong domestic demand will lead to sustainable inflation. With fading prospects of U.S. interest rate cuts, the yen's weakness against the dollar poses challenges for the BOJ's policy decisions. Markets anticipate clues on tapering from BOJ Governor Kazuo Ueda, as the central bank aims to address economic signals while maintaining its price target progress. The BOJ's move towards normalization of monetary policy aligns with global central banks' adjustments to combat inflation, with the expectation of tapering bond purchases starting at around 6 trillion yen on Friday.
Source: YAHOO