Barclays Research discusses its expectations for today's BoJ policy meeting.
"We expect the BoJ to leave its policy unchanged, but to confirm that it will conclude its special COVID operations in September, as scheduled, and even possibly revise (or indicate a future revision of) its dovish forward guidance, which is tied to COVID and suggests interest rates will remain at their present “or lower” levels," Barclays notes.
"Any revisions to forward guidance, which could be interpreted as a step toward future policy changes, will warrant particular attention as an upside risk to the JPY," Barclays adds.
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