The Bank of Japan meet this week with the statement due on Thursday 17 December 2018
- Among the G10 central banks, the Bank of Japan (BOJ) continues to be the least likely to normalize its easy monetary policy anytime soon.
- We think that the BOJ may still need to do more "tweaks" to reassert its easy monetary policy position, just like the July 2018 MPM. We cannot rule out that the "tweaks" may be brought forward to Dec 2018.
- the Bank of Japan is still licking its wounds after the semi-failed attempt in July to move towards a normalisation of the YCC policy