BOJ preview: What to expect in USD/JPY?

By FXStreet Most market participants are expecting the Bank of Japan to leave its monetary policy unchanged today, following the dramatic and unexpected decision to set a negative interest rate program in its last meeting. Goign forward though, the market still appears keen to bet on further easing, but not just yet, as the Central Bank now monitors the impact of its negative interest rate policy.

Expectations for further negative rates remain, but not for today

Adam Button, Managing Director at Forexlive wrote for AshrafLaidi.com, noting: “First, there are two numbers to watch with the BOJ decision, which is usually announced between noon and 1 pm Tokyo time. The first is the main policy rate, which was lowered to -0.10% in a surprise move at the January BOJ. Another cut is extremely unlikely and none of the economists surveyed by Bloomberg anticipates it.”

Adam adds: “Where there is some chance of a chance is in the growth in the monetary base, which currently sits at 80T yen. A handful of economists see a rise to 90T yen. The reason most don’t expect any change isn’t the economy. Signs of deflation and non-existent growth continue to mount and the recent strength in the yen isn’t …read more

Source:: FX Street