NEWS / Foreign Exchange

Bank of Japan Preview

BoJ Meeting Preview

The Bank of Japan will, almost for sure, keep its rates unchanged at 0.50% on its upcoming meeting. With no important fears about inflation, and an economic growth under expectations the BoJ feels no need to hike rates.

Eyes will be put on the clues that the bank will give for its movements on the next months, and also in the analysis of the actual Japanese economic situation.

In January '07, the central bank raised the overnight call rate target for second time in six years, amid signs that the economy is on the mend and deflation is history.

Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table.

• BoJ home page
• Minutes of previous Monetary Policy Meetings
• Forum Poll: What will be Fukui's decision?

In-Depth Analysis

• Forex Daily Analysis - All eyes are on the BOJ Rate Decision tonight by ForexYard
• Wakeup Call on Forex Markets - JPY Weaker on Speculation that the BoJ Will be Dovish by Saxo Bank

Related News

• Bank of Japan meets to decide on interest rates, but economists expect no change (AFX News)

Analysts' comments

• Derek Halpenny, senior currency economist at The Bank of Tokyo-Mitsubishi:
  "Today the focus seems to be back on the yen being weaker against the dollar and on the crosses. The fact that China raised rates, plus the Asian and European equity makrets being up has reinforced the idea that risk appetite is stronger." - Reuters
• Steven Saywell, currency strategist at Citigroup:
  "Riskier assets performing better -- the Nikkei was up overnight while the Aussie and kiwi are coming back nicely. The focus is on the Fed and U.S. housing data, but also on the BOJ. There is strong chance the BOJ stays bearish and this is keeping the yen under pressure." - Reuters
• Masuhisa Kobayashi, chief JGB strategist at Barclays Capital:
  "We expect a unanimous decision to leave rates unchanged." - AFX News
• Korman Tam, currency strategist at Forexnews.com:
  "The yen sharply reversed course, relinquishing any benefits stemming from China??™s interest rate hike over the weekend. Tokyo traders quickly dumped the yen once they returned to their desks, sending it just shy of 228 against the sterling and 156.29 versus the euro. The key highlight this week will be the Bank of Japan??™s policy announcement this week. Although the BoJ is not seen tightening policy, traders will closely analyze any comments from Governor Fukui for any signals of future policy changes." - Forexnews.com