Synopsis:

BofA anticipates that the Bank of Japan will maintain its current policy rate and guidance at the monetary policy meeting concluding on September 20, with no significant changes expected.

Key Points:

1. Policy Rate Stability:

   • The BoJ is expected to keep the policy rate unchanged at 0.25%, as all analysts surveyed by Bloomberg agree.

2. Recent Policy Revisions:

   • Following the July meeting, where the BoJ hiked the rate and outlined a bond purchase reduction plan, there is little impetus for further changes so soon.

3. Lack of New Data:

   • The absence of high-tier economic data since the last meeting further reduces the likelihood of any immediate policy adjustments, reinforcing a wait-and-see approach.

Conclusion:

With recent policy changes still in effect and no new data prompting action, the BoJ is expected to remain on hold, signaling a cautious stance as it assesses the economic landscape.