BOJ to begin policy normalization in Q3 2018 – Barclays

Analysts at Barclays are out with their assessment of the Bank of Japan’s (BoJ) monetary policy outlook, arguing that there are three key events that could determine the next BoJ’s policy move.

Key Quotes:

“The key upcoming factors that they highlighted in order to determine BOJ policy outlook include:

• Shunto spring wage negotiations, whose results will be announced sequentially starting mid-March.
• BOJ's assessment of likely timing to achieve price target in its April outlook report, where retention of current wordings may appear somewhat hawkish.
• Government's declaration of "end of deflation".

Meanwhile, the BOJ is likely to reign in on any speculations for tightening at least through the end of the fiscal year (March).”