BoJ Under Pressure to Ease Policy on Friday, but May Fall Short of Expectations

The Bank of Japan (BoJ) is facing increased political pressure to implement significant monetary easing. The government is advocating for this easing to complement a substantial fiscal stimulus package worth $267 billion.

The BoJ is anticipated to revise its inflation forecasts downward, but its capacity for radical easing appears limited. It may consider extending its asset purchasing program and further lowering interest rates into negative territory. However, BoJ Governor Haruhiko Kuroda has dismissed the idea of “helicopter money” as a means to rejuvenate the economy.