Bank of Japan July 2018 monetary policy decision and an updated Outlook report are both due soon

The BOJ keep us guessing on timing:

I've posted a few what to expects for the announcement and for the yen after (see below). Here are a final few:

ANZ:

  • Recent media speculation about a change in policy - owing to concerns over the sustainability of the BoJ's current policy framework - has turned next week's monetary policy meeting into a market event. We don't expect any change, given that the Bank is set to downgrade its inflation view. Moreover, any policy tweak could be misinterpreted as a step toward normalisation. A signal the BoJ would be reluctant to send now, with inflation far from target. The issue of policy sustainability remains, but the Bank has time to take a considered approach on how best to manage any policy adjustments to address these concerns.

Barclays:

  • We believe significant policy changes are unlikely at next week's MPM, although the BoJ's language could open the door to future tweaks at the operational level. We retain our outlook for normalization (shortening of sector targeted for yield control) to begin from April 2019.

Earlier previews: