As the week draws to a close, market anticipation is on the rise for the Bank of Japan's (BoJ) statement, set to be released on Friday, September 22, 2023. The central bank is expected to maintain its current stance but may hint at a slightly more hawkish approach due to recent economic developments.
The BoJ's message is predicted to have a subtle shift in tone, influenced by several factors. These include higher-than-expected inflation rates, a weak Japanese Yen (JPY), and increasing global oil prices. This combination has collectively exerted upward pressure on inflation, prompting speculation about potential changes in monetary policy.
Despite these pressures, a policy tightening move from Bank of Japan Governor Ueda appears unlikely. However, there is an expectation for some form of less dovish messaging. A change in rhetoric could indicate a potential shift in monetary policy direction, which could be well received by the markets.
The timing of the BoJ's statement remains uncertain. The bank has not set a specific time for its announcement but it is projected to be released within the 02:30 to 03:30 GMT time window. For those following from the United States, this translates to between 10:30 and 11:30 pm Eastern Time on Thursday.
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