BOJ may make ETF buying more flexible in March – Reuters poll

The Bank of Japan (BOJ) is expected to make its Exchange-Traded Funds (ETF) and Real Estate Investment Trusts (J-REIT) buying more flexible when the board members will meet for the monetary policy examination in March, the latest Reuters poll of economists showed on Tuesday.

Key findings

“Eight analysts said the BOJ would revise its three-tiered deposit rate system that applies negative interest rates only to marginal excess bank reserves and two said the central bank would change the 10-year bond yield target to other durations.”

“Economists were split on which direction the BOJ will move when it next changes policy.”

“Twenty-one of 39 analysts forecast the BOJ would scale down stimulus, while 18 said it would ramp up monetary support.”

“Analysts expected the economy to contract 2.4% in January-March. The poll had predicted a 2.1% expansion in December. The economy was expected to expand 3.3% in the fiscal year beginning in April, starting with 4.1% growth in the April-June quarter.”

“Core consumer prices, which exclude volatile fresh food prices, will slip 0.5% this fiscal year before rising 0.2% next fiscal year.”