Opinions remain divided on the BoJ meeting – TDS

The Rates, FX and Commodities Strategy team at TD Securities has assessed the potential outcome of the next BoJ meeting due on Friday.

Key Quotes

“The BoJ meeting runs the risk of delivering nothing but disappointment”.

“There are rising expectations of fiscal policy and monetary policy cooperation, but July may still be too soon, despite recent headlines combining a 20tr stimulus package with perpetual bond issuance”.

“We remain of the view that sustainable growth and inflation requires well-targeted fiscal policy, rather than more BoJ action. The bottom line is anything short of a grand plan will be met with a USDJPY collapse”.