BOJ unlikely to tighten policy in January, focus on preparations for banks

<p>An analyst at Daiwa in Japan is dismissing the idea of a January Bank of Japan policy pivot.</p><ul><li>Its “quite unlikely” the BOJ will move away from negative short term rates at the January meeting.</li><li>Arguing that a monetary tightening would not help the economy, tightening is "not really desirable in theory"</li><li>What the BOJ will do though, “I think the BOJ will lay the groundwork for banks to make preparations (for a change)” </li></ul><p>I posted earlier on UBS not expecting much form the Bank of Japan either:</p><ul><li><a href="https://www.forexlive.com/centralbank/ubs-analysts-caution-against-getting-too-excited-about-the-bank-of-japan-doing-anything-20231220/" target="_blank" rel="follow" data-article-link="true">UBS analysts caution against getting too excited about the Bank of Japan doing anything</a></li></ul><p>ICYMI, the BOJ heald steady its meeting this week:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-boj-policy-left-unchanged-jpy-weakened-20231219/" target="_blank" data-article-link="true">ForexLive Asia-Pacific FX news wrap: BOJ policy left unchanged, JPY weakened</a></li><li><a href="https://www.forexlive.com/news/forexlive-european-fx-news-wrap-yen-extends-post-boj-fall-dollar-lower-alongside-yields-20231219/" target="_blank" data-article-link="true">ForexLive European FX news wrap: Yen extends post-BOJ fall, dollar lower alongside yields</a></li></ul>

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