According to economists at Goldman Sachs, the Bank of Japan (BOJ) is unlikely to alter its ultra-loose monetary policy stance, despite the increased pressure to act amidst the rapid depreciation of the yen and aggressive Fed rate hikes.

Key quotes

"We expect the BOJ to maintain the status quo across all monetary policy parameters — yield curve control (YCC), asset purchase programs, and forward guidance (with respect to policy rates) — at its September 21-22 monetary policy meeting (MPM).”

"We also expect the BOJ to confirm that the repeatedly extended special COVID-19 financing program will be wound down at the end of September, as scheduled."