China will be near the top of the agenda at the Bank of Japan meeting ending next Thursday, according to WSJ sources.
the Bank of Japan is worried it still may not be strong enough to withstand sudden shocks from overseas, according to people familiar with the BOJ’s thinking who cited China as the economy’s “biggest risk.”
They say that overseas worries could derail the recent uptick in growth, especially after China tightened liquidity in late May. The overall takeaway, however, is that the BOJ is pleased with the growth in the economy, which means more programs are unlikely.
The BOJ is becoming increasingly confident that the economy is nearing a modest recovery supported by brisk domestic demand, and the policy board is likely to upgrade the assessment of the economy for a seventh consecutive month while making no changes to the easing measures it introduced in April, the people said.
