BoJ won't raise long-term yield target this year – Reuters Poll

The outcome of the latest Reuters poll on the BoJ’s monetary policy programme for this year, a majority of the economists polled see the BoJ keeping its long-term interest rate target unchanged this year.

Key Findings:

“Around 40 percent predicted the BOJ would raise the target this year, but the rest either projected it would remain at zero in 2018 or left some future quarters blank, saying their outlook depended on who would be the new BOJ governor after Haruhiko Kuroda’s term ends in early April.

Many economists didn’t foresee the Bank of Japan unwinding its massive stimulus this year, but 16 did.

Two thought the central bank could begin cutting back in April, two said September, eight predicted October and four predicted December.

Seventeen expected the wind down would begin in 2019 or later.

Economists also largely thought the BOJ would continue - in its policy statements at least - to target an annual increase in its bond holdings of 80 trillion yen.

13 of 36 economists said Japan Govt could declare victory over deflation by end-2018.    

Economists see North Korea tensions, China's economic outlook posing top risk factors for Japan.”