BoJ lagging further behind - Nomura

The BOJ is becoming a lone dove among the major central bank community, according to analysts at Nomura.

Key Quotes

“Foreign central banks are taking steps toward policy normalisation, but the BOJ’s accommodative policy stance will likely remain intact this week, as we think a downgrade of its inflation forecast is inevitable again. The Bank also has a lone dove on its policy board (a dove of doves), and his policy proposal, if any, will be worth monitoring.”

“The BOJ’s communications on ETF purchases will also be important, as the Bank’s pace of ETF purchases has slowed considerably amid strong equity price performance. We think the BOJ’s persistently accommodative policy stance will weaken JPY against the major currencies, and we recommend having EUR/JPY long exposure.”