The Bank of Japan (BOJ) is likely to call an end to its special measures to facilitate the financing of smaller firms at its Sept. 21-22 policy meeting, MNI said in its preview ahead of the central bank’s decision on Thursday.
“BOJ will stand pat on monetary policy in the face of continuing economic weakness.”
“While officials are monitoring rising inflationary pressures due to higher food prices and while a slide in the yen to a 24-year low against the dollar could potentially raise political pressure on the Bank to act, the BOJ's board will likely maintain an easing bias given that the output gap is in negative territory. “
“Fears over downside risks to the economy could even prompt the bank to tweak guidance for "short- and long-term policy interest rates to remain at present or lower levels."