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Bank of Japan Expected to Maintain Ultra-Low Rates Despite Inflation Rise

  • A Reuters poll found 52% of Japanese firms want the BOJ to focus on financial market stability.
  • of economists polled by Reuters said the BOJ is unlikely to unwind its ultra-easy policy at its April meeting and will likely keep its yield curve control policy unchanged.
  • Only 11% of economists said the BOJ will start scaling back monetary stimulus at its April meeting, while 41% said June is more likely.
  • Economists pushed back their forecasts for when the BOJ will end negative short-term rates.
  • The BOJ is expected to maintain ultra-easy policy next week given risks like slowing global growth and uncertainty about wage increases.
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