- The Bank of Japan (BoJ) will hold its final monetary policy meeting of 2014 on 18-19 December. Standard Chartered Research notes it does not expect any change in their policy in near term:
- We expect no policy change, with the BoJ likely to keep its annual asset purchase target at JPY 80tn.
- The board is also likely to keep its economic assessment unchanged, saying that the economy continues to recover moderately.
- The BoJ unexpectedly expanded its monetary easing programme on 31 October in order to pre-empt the return of a deflationary mindset. However, the decision was made by a 5-4 vote.
- While Governor Kuroda and his two deputies have firmly maintained that the 2% inflation target can be achieved “around” FY15 (year starting in April 2015), some board members have expressed different views.
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