JP Morgan expects more BOJ easing at March 14 & 15 meeting

Author: Eamonn Sheridan | Category: Central Banks

JPM citing the yen appreciation and its threat to the inflation target and company profits

They are forecasting:

A deeper cut to negative rates, from the -10bp announced January 29 to -50bp & more QE 

  • JGB buys from current 80tln yen to 100 tln yen
  • ETF purchases to go from 3tln yen to 6
  • J-REIT purchases from 90bn yen to 200B yen

On FX, they say intervention is an option if the government want to take immediate action

JPM also add that they cannot rule out the possibility of the BOJ calling an emergency meeting ahead of the scheduled March meeting.


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An emergency meeting? That's right up there in shock value. I suppose USD/JPY off 10 or whatever big figs so quickly could justify it ... but I have to say I don't think so. 

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