The Bank of Japan monetary policy meeting concludes today, 20 June


Preview (in brief) via Société Générale:

  • We expect the BoJ to leave the current monetary easing framework unchanged
  • At the April policy meeting, the BoJ strengthened its forward guidance stating that "the Bank intends to maintain the current extremely low levels of short- and long-term interest rates for an extended period of time, at least through around spring 2020"
  • we don't believe the BoJ will change its forward guidance anytime soon
  • In the April outlook report, BOJ … downgraded its export and production assessment... maintained its positive view on household consumption s... slightly changed its overall assessment to "been on a moderate expanding trend" from "has been expanding moderately" … maintained its strong outlook: "Japan's economy is likely to continue on an expanding trend throughout the projected period"
  • In line with the government's economic assessment being maintained at "is recovering at a moderate pace", the BoJ will likely maintain its economic assessment at the June policy meeting.