The BOJ is up this week! What can the central bank say and how can its statement affect the yen’s price action?
Here’s a short list of catalysts to watch:
BOJ’s policy decision (Oct 31, Asian session)
The biggest data release from Japan this week will come from its central bank.
The Bank of Japan (BOJ) is expected to maintain its policies steady for another month as members are expected to “save their bullets” for worse economic conditions.
This doesn’t mean that the event will be a snoozer though! After all, the BOJ is also printing its quarterly outlook report on top of its usual statement. Keep your eyes on remarks about global growth prospects, Japan’s inflation estimates, and yield curve prospects.
Kuroda recently threatened that BOJ members would “certainly” reduce short to medium-term interest rates if they need easier monetary policies. Let’s see if this week’s outlook and post-decision presser could give clues on how close members are in pulling the trigger!
While the BOJ’s decision will likely get all the spotlight, consumer-related data printed this week could also give hints on the direction of Japan’s consumer prices.
Annualized retail sales (Oct. 29, 11:50 pm GMT) is expected to jump by 5.4% after rising by 1.8% in August.
The consumer confidence index (Oct 31, 5:00 am GMT), on the other hand, could slip from 35.6 to 35.3 in October. Finally, the unemployment rate is expected to tick higher from 2.2% to 2.3% in September.
Remember that strength in consumer activity has somewhat cushioned weaker manufacturing numbers from Japan lately. And, with the country finally rolling out its sales tax increase in September, traders will want to see if BOJ members will have more to worry about in the coming months.