An investment bank looks ahead to the BOJ meeting this Friday

The Bank of Japan (BOJ) have their next monetary policy meeting scheduled for Friday this week (31st of October).

RBS have a look ahead at the meeting (bolding mine):

• The Bank of Japan (BoJ) will release its semi-annual Outlook Report
• Includes updated forecasts for inflation and growth
• It has become increasingly clear that BoJ is unlikely to reach its inflation goals in the 2-year horizon set out when it began its QQE program in April 2013 – but that does not mean the BoJ will not keep its positive assessment on prices intact
• The BoJ may maintain its positive stance on prices and growth over its forecast horizon, fending off renewed calls for additional easing
• The BoJ may want additional clarity on the future of the second consumption tax hike in 2015 before embarking on new large-scale stimulus

On USD/JPY:

• We favour USD/JPY upside next week – broader-based risk aversion is the key risk to that view.