BoJ: No changes to its monetary stance in 2022 – UOB

The BoJ is expected to confirm its accommodative policy once again at its meeting later in the month, suggested Lee Sue Ann, Economist at UOB Group.

Key Takeaways

“In a stark divergence with its G7 peers, the BoJ kept its preference for easing (“it expects short and long-term policy interest rates to remain at their present or lower levels”).”

“With inflation large stemming from an uncertain supply shock while domestic demand remains weak, we are certain that the BoJ will keep its current easy monetary policy intact for 2022 and will maintain its massive stimulus, possibly at least until FY2023.”