No change expected at the Bank of Japan policy meeting today: “I don’t think it is live”

Comments via Reuters from Carol Kong, currency strategist at Commonwealth Bank of Australia, on the BOJ meeting:

• “I don’t think it is live,”
• “I think the earthquake in Japan… really shifted market expectations toward the BOJ not normalising policy any time soon.
• “So I don’t think today is going to bring any surprises in terms of the interest rate and (yield curve control) policy.”
• “Markets will closely watch whether the BOJ will revise up the 2025 CPI forecast towards the 2% target or keep it steady at 1.7%,”
• “What that number prints will signal a lot about whether or not the BOJ sees the lift in inflation being sustainable.”

I posted earlier on the Outlook report:

• Bank of Japan to revise price outlook for fiscal 2025

Other previews:

• Economic calendar in Asia – Tuesday, 23 January 2024 – Bank of Japan policy statement due
• Bank of Japan preview – traders will focus on Governor Ueda’s following press conference

• Credit Agricole see the potential for yen volatility surrounding the Bank of Japan today

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USD/JPY update:

This article was written by Eamonn Sheridan at www.forexlive.com. Source