BoJ to maintain its 'QQE with yield curve control' policy unchanged – Danske Bank

Analysts at Danske Bank expect the Bank of Japan to maintain its 'QQE with yield curve control' policy unchanged at the next monetary policy meeting ending on Friday 27 April.

Key Quotes

“We do not expect new super dovish deputy Wakatabe to team up with Kataoka in the dissenting camp but instead pull board consensus slightly more dovish.”

“Currently we consider the probability of further easing to be at least as high as the probability of tightening, but we do not see any changes to policies within a one-year horizon.”

“We expect USD/JPY to continue to trade mostly sideways within 105-110 in the near term, targeting 108 in 3M. In our view, it would require a substantial dovish shift in the Bank of Japan's rhetoric for USD/JPY to settle above 110.”