The Bank of Japan (BOJ) is scheduled to hold its monetary policy meeting on Friday, April 26. The meeting is expected to take place sometime between 0230 and 0330 GMT (Thursday evening US time 2230 – 2330). The BOJ does not schedule an exact time for the release of its decision.
Since the last full forecast meeting in January, there have been several key developments that could influence the BOJ’s decision-making. First, the BOJ changed its policy framework at the March meeting, introducing a new target for the yield on 10-year Japanese government bonds (JGBs). Second, the global economic outlook has deteriorated, with the war in Ukraine and the COVID-19 pandemic continuing to weigh on growth. Third, the yen has depreciated significantly against the US dollar, raising concerns about imported inflation.
Scotia Capital analysts expect the BOJ to keep its policy settings unchanged at the April meeting. However, they note that the BOJ could make a more dovish statement in light of the recent deterioration in the economic outlook. The analysts also believe that the BOJ is likely to maintain its current yield curve control (YCC) policy, targeting the 10-year JGB yield at around 0%.
The BOJ’s decision will be closely watched by investors and economists around the world. It is likely to have a significant impact on the Japanese yen and the broader global financial markets.
