Bank of Japan decision on JGB yield cap due this week – yen "a hissing volcano"

<p>In a report in Japanese media the Nikkei compares the yen to a volcano.</p><p>This ahead of the Bank of Japan monetary policy meeting this week (the statement is due on Tuesday, 31 October 2023, Japan time). </p><p>The central market focus for the meeting is any change to the Bank of Japan's yield curve control framework, where the Bank has capped 10-year government bond yields at 1%. </p><ul><li>BofA &amp; UBS are forecasting 10-year yield cap to be raised to 1.5%</li><li>Nomura, Morgan Stanley and Goldman Sachs expect no change</li><li> BNP Paribasasses the odds for a change at a coin-toss: 50-50</li></ul><p>The minus 0.1% target on short-term rates is widely expected to remain unchanged. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.