eFXdata reports that ANZ Research discusses its outlook for the BoJ policy trajectory.

"The BoJ continues to stand ready to do more if needed, but it hasn’t made any notable adjustment for some time. The BoJ recently offered 0.1% interest on some of its reserves to regional banks that made decisions to merge and/or demonstrated cost savings," ANZ notes. 

"The move reflects growing concern over the health of regional banks after a prolonged period of negative rates and a very flat yield curve. Governor Kuroda has played down the significance of the move for monetary policy. He says the adjustment is needed for prudential reasons. This possibly keeps the door open to take rates deeper into negative territory if the currency appreciates sharply," ANZ adds.