The Bank of Japan meet next week (October 30 and 31)

Statement will be accompanied by an updated Outlook Report (the "Outlook for Economic Activity and Prices" includes revised GDP and inflation forecasts)

Main points summary from Bank of America / Merrill Lynch preview of the meeting:

  • The BoJ is likely to keep its rates and QE targets unchanged at its 31 October MPM, in line with consensus expectations.
  • BoJ cannot easily normalize policy or implement additional easing. First it needs to keep reducing JGB purchases under YCC.
  • The BoJ's stubbornly dovish stance leaves JPY as a preferred funding currency. USD/JPY's volatility likely to come from USD.

That's a quickie, but if you'd like more, I posted a more extended preview up yesterday: Preview of the BOJ meeting (Cap Eco)