BoJ seen on hold later this week - UOB

In opinion of Economist Lee Sue Ann at UOB Group, the BoJ is forecast to stick to the accommodative stance for the time being.

Key Quotes

“Japan’s weak inflation outlook reinforces our view that the BoJ will not be tightening anytime soon and will maintain its massive stimulus in the next few years, possibly at least until FY2023.”

“Markets are convinced that the BoJ has reached the end of the line on normalization and will remain in a holding pattern on policy until at least April 2023 when Governor Kuroda is scheduled to leave the BoJ.”