The Bank of Japan's new negative rate is the most likely tool for any expansion of stimulus, with a majority of economists in a survey forecasting additional easing by July.
Eighty percent of analysts see a further cut to the negative rate as the most likely action for Gov. Haruhiko Kuroda, and almost 90 percent see more easing coming at one of the four meetings through the end of July. Only five of 40 economists expect additional stimulus at the meeting ending Tuesday, according to the survey by Bloomberg.
The bank shocked markets in January with the negative rate policy, which means it charges financial institutions on some of their reserves at the BOJ. The effects of that decision are still being felt — yields on more than 70 percent of government debt are now below zero, money market funds stopped accepting investments, and bank shares have tumbled on profit concerns.