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2 Apr 2013
Forex Flash: Japanese expectations are high, but swift move could impress market - Nomura
FXstreet.com (Barcelona) - Nomura Strategist Yujiro Goto notes that the first BoJ meeting after the leadership change will be held on April 3-4.
Additional easing is now widely expected at the meeting, but there are many uncertainties about policy tools as the Bank is likely to change the monetary policy framework significantly. He believes that possible policy options are: 1) the consolidation of two JGB buying operations (APP and Rinban), 2) scrapping the banknote rule, 3) further increase in asset purchases (including risky assets such as ETFs, REITs and longer-term JGBs), 4) changes in communication strategy, and 5) an earlier start of open-ended asset purchases.
Additional easing is now widely expected at the meeting, but there are many uncertainties about policy tools as the Bank is likely to change the monetary policy framework significantly. He believes that possible policy options are: 1) the consolidation of two JGB buying operations (APP and Rinban), 2) scrapping the banknote rule, 3) further increase in asset purchases (including risky assets such as ETFs, REITs and longer-term JGBs), 4) changes in communication strategy, and 5) an earlier start of open-ended asset purchases.