Bank of Japan likely to keep monetary policy unchanged in April

The Bank of Japan is set to meet this week for its monetary policy decision. According to a DBS Bank research report, the Japanese central bank is likely to keep its policy on hold during the meeting.

The Bank of Japan, in its quarterly economic report is expected to lower the FY2018 growth/inflation projections; however, it might keep longer-term forecasts and continue to anticipate inflation to reach 2 percent “around FY2019”.

“Considering the risks from trade protectionism and the decline in Prime Minister Shinzo Abe’s approval rating, we expect the BOJ to adopt a cautious stance and refrain from unwinding stimulus in the whole year of 2018”, added DBS Bank.

At 14:00 GMT the FxWirePro's Hourly Strength Index of Japanese Yen was neutral at 28.498, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 165.876. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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