While most attention over the next week will be focused on the fascinating slow-motion-train-wreck developments in the US political arena over the next week, let’s please think of the central banks, which are used to being the key source of public fascination. And while the Fed’s November 1-2 meeting will come and go, with Yellen paralyzed with fear and certain to change nothing just 6 days before the election, a far more interesting central bank meeting due later this week, is that of the BOJ which addresses the market on November 1, and which over the past few months has set the global bond market on edge with its attempts to steepen the JGB yield curve which in turn led to the VaR-shocked early September stock selloff, inspiring other central banks to contemplate tapering long-end purchases resulting in a the biggest global debt selloff since the Fed’s 2013 taper tantrum.
This is what to expect from the BOJ according to Goldman Sachs:
We expect the Bank of Japan (BOJ) to maintain current monetary policy at its October 31-November 1 Monetary Policy Meeting. Here, we look at this and other points in a Q&A format.
Q1: Will the BOJ ease further at the next monetary policy meeting?
A1: We expect the BOJ to maintain the status quo.
This post was published at Zero Hedge on Oct 30, 2016.