The Bank of Japan said last month that if the global economic growth slows down and undermines the domestic economic recovery, the bank will not hesitate to implement easing. According to a Reuters survey, more than half of analysts believe that the possibility of the Bank of Japan further relaxing its policy has risen.
32% of analysts expect the Bank of Japan to act as soon as September; 26% of analysts estimate it will be in October. Yusuke Kaniwa, an analyst at Hamagin Research Institute, said that Sino-US trade frictions have intensified and market risk aversion has pushed up the yen’s exchange rate. If this situation continues, the Bank of Japan will have to relax its policy.
63% of analysts expect the Bank of Japan to adjust its forward-looking guidance; 37% of analysts estimate that the Bank of Japan will allow the 10-year Japanese government bond yields to widen.
Reuters conducted an investigation from August 2 to 13, and interviewed 38 analysts.