Bank of Japan meeting this week - Goldman Sachs preview - lowered assessments
The Bank of Japan meet March 14 and 15 (Thursday and Friday this week)
We expect the BOJ to maintain the status quo in all categories of monetary policy
- Specifically, we expect the BOJ to maintain its short-term policy rate target of -0.1% and 10-year yield target of 0% (leaving the band for 10-year yields at ±20 bp) and make no changes to its program of ETF and other risk asset purchases.
- Also, we expect the BOJ to maintain its long-term JGB purchase guideline of increasing its net holdings at a pace of about ¥80 tn per year.
- discussion at the meeting will focus on evaluating January data, especially production and export data, which were notably weak
- the BOJ will likely need to lower its production and export assessment, in our view, while it is likely to maintain its overall economic assessment.