In a preview of what we can expect at this week's Bank of Japan meeting, chief currency strategist in Tokyo at Citi, Osamu Takashima, says the BOJ will recognize the need to ease further, but not yet.
- Says the BOJ will look to ease further sometime between the end of October 2015 and January of next year
- He cites the fall in the Nikkei as a concern for the government, which may spur further easing
- Says its likely the BOJ will boost asset purchases from the current yearly rate of 80tln yen to 100 tln yen
- Says the government will complement the increase with a fiscal boost
On the yen, says USD/JPY is unlikely to fall below 115, or if it does so to not sustain there