What to expect from this week's BoJ? - Nomura

Analysts at Nomura noted this week's BoJ scheduled for 20-21 September (Wed/Thu).

Key Quotes:

"BOJ policy board meeting We expect the BOJ to leave monetary policy unchanged.

Core CPI inflation is on a moderate uptrend, albeit probably weaker than the Bank of Japan's assumption. Economic indicators are generally healthy, with real GDP growth in 2017 Q2 (Apr-Jun) fairly strong and industrial production projected to maintain growth in Q3."

"We think the assessment will remain that inflationary momentum is being maintained.

Our focus in BOJ Governor Haruhiko Kuroda's press conference will be on questions about the impact on BOJ monetary policy from the downtrend in global long-term interest rates and the FOMC decision to reduce its balance sheet, a decision we expect will be made on 19-20 September."