Lee Sue Ann, Economist at UOB Group, sees the BoJ sticking to its ultra-accommodative policy stance at the June 17 meeting.

Key Quotes

“Although Japan’s inflation has climbed in recent months, BOJ Governor Kuroda does not see 2% inflation in Japan as sustainable ‘when it’s triggered by a rise in commodity prices and worsening trade factors’ with wage growth still absent.”

“So, both Japan’s lacklustre economic recovery and the challenging growth outlook will imply the BOJ will not be tightening or signalling to do so anytime in 2022.”