BoJ: a dovish tale - Nomura

Ahead of today's BoJ decision, analysts at Nomura explained that Mr Kataoka, the only member of the Policy Board to indicate opposition to the BOJ's current monetary policies, once again showed his dovishness in this speech. 

Key Quotes:

"However, we see no sign that he has become more dovish than before, as the two concrete policy prescriptions he gives in this speech closely resemble the suggestions he made at the Policy Board meeting of 22-23 January 2018. Also, while Mr Kataoka supports additional easing, he sees no need for quantitative expansion, and this makes him a different sort of dove than Waseda University professor and BOJ deputy governor nominee, Masazumi Wakatabe, who has argued for expanding quantitative policy measures."

"Concerning the conduct of monetary policy, Policy Board members that could conceivably cast opposing votes will remain a minority even when counting Mr Harada and Mr Wakatabe."

"Accordingly, we see little likelihood as of now of the BOJ adopting policies more accommodative than the present set of policies."