Further qualitative easing from the BOJ likely at the 14-15 July meet

Japan public investment, a key economic driver under PM Abe, may now be in a long-term downtrend. Capex, a noticeable laggard, should slowly strengthen but could use support.

An IOER cut would lower the BoJ's "funding for lending" rates. This might support capex and hence growth and longer-term inflation prospects.

"We now expect the BoJ to cut the IOER, in addition to buying more equity-linked ETFs, on 15 July. In our view, however, it would not mark a step towards a negative interest rate policy." - Says Barclays Capital