Forex Flash: BoJ grapples ‘new dimension’ of monetary easing – RBS

FXstreet.com (Barcelona) - Expectations are growing for a “new dimension of monetary easing policies” following the appointment of a new BoJ governor and two deputy governors. “While the new team’s inaugural press conference held last week did not offer any major surprises, we think it confirmed a strong commitment to enhanced easing.” writes Junko Nishioka, Chief Economist at RBS.

Even if the three new leaders agree on policy actions, they would not constitute a majority on the policy board, and the feasibility of their easing policies depends on winning support from the other six members. However, “we do not see any board members arguing against additional easing, despite differing degrees of support, and we expect some board members who have not directly advocated easing measures so far to gradually warm up to Governor Kuroda’s proposals.” he adds.