Citi on the Bank of Japan meeting this week (October 30 – 31). The market view is for no change to policy at this meeting.
Citi, too, is tipping no policy change.
we share the widely held view that policy will be left unchangedconsensus is a rate hike in either December or January
Citi are forecasting December
we do not expect the BoJ to signal for it vigorously in October given uncertainty around the approaching US election and payroll data BoJ will likely emphasize the continued trend of rate hikes while pointing to external uncertainty
—
I suspect the Japanese election result last weekend may shift views to January for the next BoJ rate hike soon enough.
This article was written by Eamonn Sheridan at www.forexlive.com.
