FXStreet (Córdoba) – According to analysts from Danske Bank, the Bank of Japan will introduce more monetary stimulus in order to boost the economy and inflation.
Key Quotes:
“The Bank of Japans (BoJ) monetary policy meeting will take centre stage. We expect the BoJ to announce additional QE by increasing its target for the annual monetary base expansion from JPY80trl to JPY100trl.”
“Additional asset purchases are likely to involve longer dated Japanese government bonds and other assets such as exchange-traded funds and real-estate investment trusts.”
“In particular, we believe that a substantial downward revision of both the inflation and growth forecasts in the semi-annual outlook report for FY 2016, which will be released in connection with the policy announcement on 30 October, will require action from the BoJ in order to retain credibility in its inflation target of 2% CPI inflation.”
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