Bank of America analysts provide insights into the upcoming Bank of Japan (BoJ) monetary policy meeting scheduled for Friday, April 26, 2024. Market analysts, including those from Bank of America, predict the BoJ will maintain its current target range for the uncollateralized overnight call rate at 0-0.1%. This consensus follows the BoJ’s exit from the negative interest rate policy and a significant overhaul of its monetary framework on March 19.
The BoJ’s recent shift from extraordinary to “normal” easing has set the stage for the central bank to assess the impact of these changes before considering further adjustments. Governor Ueda, speaking at a seminar on Friday, indicated that the bank’s immediate focus would be on evaluating the effects of the recent policy modifications on the economy and inflation. Consequently, no changes are expected in the BoJ’s guidance on maintaining accommodative financial conditions and continuing its Japanese Government Bond (JGB) purchases at the current volume.
Despite the anticipated hold on policy changes at the upcoming meeting, investors are keenly anticipating the quarterly Outlook Report, Governor Ueda’s post-meeting press conference, and the Summary of Opinions, due on May 9, for clues about future rate hikes and adjustments to JGB purchases.
