Reuters poll: Expectations mount for BOJ to ease policy in July

According to the latest Reuters poll, markets are pricing in further BOJ easing this month, with the central bank expected to implement a combination of measures in another attempt to boost anaemic inflation.

Key Details as reported by The Fiscal Times:

“The poll taken in the past week found 23 of 27 analysts, or about 85 percent of the sample, predicted the BOJ will ease policy further at its July 28-29 meeting, when it is due to release its latest long-term economic and inflation forecasts. Last month, two-thirds of respondents had a similar call for the BOJ's July policy meeting.”

“One economist expects a central bank easing will come at the September policy meeting, two project the BOJ will ease in October and one said it would be some time next year.”

“Eighty percent of economists said the central bank would ease via a combination of measures such as cutting negative interest rates deeper and increasing asset buying such as exchange-traded funds (ETF).”

“That would take the BOJ's minus 0.1 percent interest rate to minus 0.2 percent in the current quarter and boost its monetary base target to 90 trillion yen from the current 80 trillion yen, the poll showed.”