Quotes from Capital Economics:
- As was widely expected, BoJ left policy settings unchanged at Wed's meeting. Board members upgraded their assessment of industrial production and exports, which they now see picking up. But they also acknowledged the disappointing Q4 GDP data released on Monday by noting that the recovery in private consumption has been sluggish in some areas.
- Indeed, we think that the Bank's view on growth is too optimistic. What's more, slowing inflation may dampen expectations of future price rises.
- We therefore still think that policymakers will opt for another round of preemptive easing in late-April in order to signal their determination to reach the 2% inflation target.
