Most economists have for some time expected the Bank of Japan to implement further monetary easing this year, so much so that the central bank governor’s comments this month that such a move wouldn’t come anytime soon helped send stocks sharply lower and the yen higher. But some opinions are shifting-toward no action at all.
A few days after his initial comments, BOJ Governor Haruhiko Kuroda met with Prime Minister Shinzo Abe, and afterward said he had reassured Mr. Abe that the central bank would take the necessary steps to meet its target of achieving 2% inflation by next spring.
The majority of 11 economists surveyed last week by The Wall Street Journal said they expected the central bank to take further action later this year. None said they expect it to do so at its one-day policy board meeting Wednesday. One expects action in the current quarter, five in the third quarter and one in the last quarter.