Expectations of Bond Purchase Reduction by Majority of BOJ Watchers

Reported 6 months ago

Over half of Bank of Japan watchers anticipate a decrease in government bond buying at the upcoming Policy Board meeting, with a potential rate hike in July also being considered. Around 54% of economists surveyed predict a reduction in bond purchases, citing recent yen weakness as a factor. Analysts are adjusting their forecasted rate hike timing, with a third expecting it in July, compared to 19% in April. The BOJ is facing pressure to respond to a weak yen, and with three consecutive quarters of economic contraction, prioritizing bond purchase cuts over rate hikes is likely.

Source: YAHOO

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