An increasing number of economists think Bank of Japan Gov. Haruhiko Kuroda won’t budge in the final lap of his term, in sharp contrast to lingering market speculation that a pivot toward policy tightening may be near to hand.
All 47 economists said the central bank will keep its yield curve control and asset purchases unchanged at the end of a two-day meeting on July 21, according to a Bloomberg survey. Only 14% expect a policy tightening before Kuroda ends his decade-long stint in early April, dropping from 22% in the survey last month.
Despite a further slide in the yen this week to fresh 24-year lows and central banks around the world continuing to surprise with outsized rate hikes, economists see the BOJ cementing its outlier status even further.