Citi on the Financial institution of Japan assembly this week (October 30 – 31). The market view is for no change to coverage at this assembly.
Citi, too, is tipping no coverage change.
- we share the broadly held view that coverage will likely be left unchanged
- consensus is a fee hike in both December or January
Citi are forecasting December
- we don’t anticipate the BoJ to sign for it vigorously in October given uncertainty across the approaching US election and payroll information
- BoJ will doubtless emphasize the continued development of fee hikes whereas pointing to exterior uncertainty
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I think the Japanese election outcome final weekend could shift views to January for the following BoJ fee hike quickly sufficient.