The Bank of Japan next meet on July14 and 15 and given remarks from Governor Kuroda today it appears likely they will take a knife to economic projections:
- More from BOJ Gov Kuroda: Japan Q2 GDP likely to see considerable contraction
- BOJ's Kuroda reiterates the Bank will maintain stability in Japan's financial markets
If the BOJ does cut projections it does not automatically follow that they will ease policy further. What to watch ahead of the mid-July meeting for hints of further easing is financial market volatility and more specifically yen strength. Either one of those could prompt further easing moves from the Bank.
Adding … remarks from MUFJ (Mitsubishi UFJ Morgan Stanley Securities) on this:
- "The BOJ will probably cut its projections," said Hiroshi Miyazaki, a senior economist at . "That won't mean more easing, though. Their focus now is on funding of companies and financial markets."
