Boj Unlikely to Move at Its Last Policy Meeting of 2014

The Bank of Japan (BoJ) will hold its final monetary policy meeting of 2014 on 18-19 December. Standard Chartered Research notes it does not expect any change in their policy in near term: We expect no policy change, with the BoJ likely to keep its annual asset purchase target at JPY 80tn. The board is also likely to keep its economic assessment unchanged, saying that the economy continues to recover moderately. The BoJ unexpectedly expanded its monetary easing programme on 31 October in order to pre-empt the return of a deflationary mindset. However, the decision was made by a 5-4 vote. While Governor Kuroda and his two deputies have firmly maintained that the 2% inflation target can be achieved "around" FY15 (year starting in April 2015), some board members have expressed different views.

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