I’m told not to expect much from the BOJ policy board meeting that ends this Wednesday, because:
(1) The BOJ raised the limit on its three-month term liquidity programme from Y10,000bn to Y20,000bn in March. Now it will wait and see what happens (quite probably until June).
(2) Last week’s Tankan business survey was bang in line with BOJ forecasts. The yen has fallen a bit.
(3) The last meeting was only three weeks ago.
(4) There’s another meeting at the end of April when the policy board will update its economic forecasts. If the board is going to do anything, that’s the time. Read more