Tom Kenny, Senior Economist at Australia and New Zealand Banking Group (ANZ) notes that in the face of softer inflationary pressures and slowing Japanese economic growth, the Bank of Japan (BOJ) is unlikely to make any changes to its current expansionary monetary policy.

“The Bank of Japan (BoJ) faces a triple dilemma: inflation is still far from its goal; other major central banks are easing, and its current framework is counterproductive when growth is slowing and yields are falling. Despite mounting pressure to do something, we do not expect any notable policy announcement this week. A key dynamic for BoJ policymakers is the JPY. Any notable policy action from the central bank is likely to be triggered by a stronger currency. For now, we expect the BoJ to be watchful of global FX moves.”