BoJ is reportedly leaning towards keeping its yield control policy unchanged at the upcoming meeting, via Reuters citing sources
Important
SourceNewsquawk
SectionBoJ
- No consensus within the BoJ on how soon it should begin phasing out stimulus; many policy makers see no imminent need for fresh steps given the 10yr yield is trading stably within the 0.50% cap. Adding, BoJ can wait until there is more clarity on whether a hard landing can be avoided and allow for further wage increases next year.
- Sources add, YCC needs to end at some point. Though, the timing is not now.
- Another source said even if tweaks were made, likely be a minor fine-tuning to make YCC sustainable.
- Expected to revise up core inflation forecasts for FY23, via source; though, FY24 & FY25 expected to be largely in-line with current projections.