BOJ Rate Hold: What the Data Shows

  • Monday, March 11, 2019

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The Most Important Central Bank Releases This Week
central bank communications analytics research

In an otherwise quiet week in central banking, BOJ policymakers are likely to hold rates and signal dovish policy for the foreseeable future. Although the BOJ has been reluctant to make this dovish turn, the two policymakers who dissented at the last meeting have been very vocal of late, and economic conditions have not done them any favors. Meanwhile, the only other G10 currency central banks with formal communications scheduled this week are the ECB, BOE, BOC and RBA, all of which have only one policymaker scheduled to speak, save for the ECB, which has two policymakers speaking. Consistent with ongoing Brexit uncertainty, BOE policymaker Haskel is likely to sound somewhat dovish. Similarly, RBA policymaker Debelle is likely to sound dovish as well, in keeping with the bank’s recent trend. Wilkens of the BOC is also likely to err dovish, though she may be a bit more neutral, considering that the BOC is still coming to grips with the slowdown in Canadian economic conditions amid hopes that strong labor data buoys the economy. ECB policymakers could strike a more neutral tone, as they look to signal their intentions to tighten policy in the relatively near future, even on the heels of last week’s added stimulus.

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