Japan's monetary base likely to expand by JPY 90trn per year

A disappointing inflation and growth outlook should push the BoJ to expand its QQE programme on 30 October, when the BoJ publishes its semi-annual assessment of growth and inflation. 

The monetary base is expected to be expanded by JPY 90trn (18% of GDP) per year from currently JPY 80trn. 

"However, recent signals from BoJ indicates they are less worried about the inflation and growth outlook, and hence made an extension of the QQE programme late October more uncertain. The QQE programme will likely remain in place throughout our forecast horizon", says Nordea Bank.