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BOJ Monetary Policy Navigator

How will Outlook Report address negative supply shock?

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How will Outlook Report address negative supply shock?

Key points
  • Key focus in upcoming Outlook Report is on how BoJ will address negative supply shock from rising crude oil prices

  • We project BoJ will leave target timeframe for achieving 2% price target on hold; if timing is moved back, market expectations of future rate hikes are likely to fade

  • We expect Bank will maintain commitment to continue raising rates; policy guidelines may reflect views of negative supply shock

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