The BoJ will hold a Monetary Policy Meeting (MPM) on 6-7 October.
Bank of America Merrill Lynch assumes the central bank is likely to maintain the current pace of monetary easing due to the following reason:
- (1) it is due to revise its economic and inflation forecasts at the subsequent MPM in about three weeks' time (30 October) alongside its Outlook Report.
- (2) current share prices and the yen exchange might not have reached levels that require urgent monetary easing.
However, the question of whether the BoJ will act to ease in the near future (30 October, or at the subsequent few MPMs) has become a closer call, since financial and currency markets have remained unstable since August, on top of which some economic data are coming in below expectations, says Bank of America Merrill Lynch.
