BoJ: Expect no change in interest rates or purchase quantities – Nomura

Research Team at Nomura, has revised their outlook for the Bank of Japan's 20-21 September monetary policy meeting based on comments from policy board members and Nikkei and other media reports since the Bank announced at the end of July that it plans a "comprehensive assessment" of its policies' effectiveness.

Key Quotes

“The details of our revisions are as follows.

• For interest rates, we think the BOJ will make no change to either the interest rate on the policy-rate balance portion of current accounts held by financial institutions at the BOJ or interest rates on loan support operations.

• We also think the BOJ will make no change to the quantity of JGB and other purchases.

• We now expect the BOJ to make fresh efforts to steepen the yield curve by removing the rule that limits the average remaining maturity of its JGB purchases to 7–12 years.”