FXStreet (Bali) - While expectations for near-term BOJ easing have increased, according to a Bloomberg survey, the Central Bank is not expected to ease further today, notes Nomura.
Key Quotes
"Market expectations for easing at this week’s meeting (6-7 October) are still relatively limited. Only two researchers (6%) expect the Bank to ease this week. Both of them expected an easing at the September meeting and thus, expectations for easing at this week’s meeting have not risen much, at least among researchers. JPY short positions have been also small."
"We do not expect the BOJ to ease this week, and a no change decision could put downside pressure on USD/JPY. At the same time, market expectations for BOJ easing will likely be sustained into the second meeting in October (30 October), as the BOJ almost certainly needs to lower its inflation and growth forecasts at that meeting."
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