BoJ: Markets expect some meaty further additions to its easing programme - BNZ

Kymberly Martin, Senior Market Strategist at BNZ, suggests that the market now awaits the Bank of Japan’s meeting tomorrow and the market consensus appears to be for the Bank to announce some meaty further additions to its easing programme.

Key Quotes

“No doubt the BoJ will be hoping this will lead to a weaker Yen. But memories are fresh of the Yen perversely surging in the days after the BoJ introduced a negative policy interest rate at the end of January.

In that episode NZD/JPY weakened. The BoJ has a history of disappointing market expectations and we’re not convinced a weaker Yen will necessarily follow this week, even if the Bank delivers further easing measures. Currently the NZD/JPY trades around 74.30, just above an area of support that has sustained for the past week or so.”