Investors are on high alert for further policy tweaks from the Bank of Japan this week after December¡¯s shock decision to raise the bar on yield movements failed to significantly improve liquidity in the market.
While almost all polled economists expect no change at the two-day meeting finishing Wednesday as their main scenario, market pressure on the central bank¡¯s stimulus framework has intensified since last month¡¯s efforts to ease the side effects of its policy.
Another increase in the key 10-year yield¡¯s permitted trading ceiling is seen as the most likely course of action, should the BOJ act, given the bank¡¯s recent emphasis on improving bond-market functioning.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.