A preview of the Bank of Japan monetary policy meeting due this week (September 14 and 15) ...

And what BOJ preview would be complete without the views of sources 'familiar with their thinking'?

(OK, this one, from late last week, that looked at the latest Reuters survey of analysts/economists, 33 of 35 say the BOJ will leave policy unchanged)

Reuters have sources saying:

  • The BOJ will stand pat this week
  • Board numbers have moved closer to Governor Kuroda's dovish views
  • Board is concerned about diminishing policy options and the drain of liquidity from the JGB market (due to all the BOJ has bought)
  • There is little (nothing) the BOJ can do about headwinds from overseas (weak global demand, China slowing cited for example)
  • Government concerns over any further weakening of the yen and increase the price of imports limits the BOJ also

The article notes a few positives:

  • Record company profits ...(and hopes that some of these will be used to boost wages & capex)
  • Household income up a little
  • Household consumption up a little

More at Reuters


I'll have more on the BOJ as we approach announcement day, the 15th.