Institutions: The Central Bank is likely to remain dovish long after April

Huitong Financial News On February 21, Reuters market analyst Haruya Ida said that the continued weak Japanese economic data suggests that the Japanese Central Bank may continue to maintain ultra-loose policy after Long adjusting policy in April expected by market watchers. Given Japan’s current technical recession, the Central Bank is likely to wait for Q1 2024 GDP data before starting a policy shift. The market seems to be focused on Japan’s inflation outlook, but for the Central Bank, economic growth is just as important. This scenario may even emerge after the salary negotiations that began in April. Inflation is expected to rise sharply, but it is uncertain at this time.