The statement from the Bank of Japan is expected between 02:30 and 03:30 GMT on Friday, October 28, 2022.

There is no set time for the release, but during this window it’s a good bet based on past experience.

The press release will be accompanied by new forecasts from the Bank, the Outlook report.

Bank of Japan Governor Kuroda will speak at his press conference at 06:30 GMT following the statement.

What to expect?

No policy change is expected from the BOJ tomorrow. The two main policy axes are:

  • the minus 0.1% target for short-term interest rates
  • the objective of the 10-year bond yield around 0% (+25 bp cap, with a commitment to perform unlimited, daily, fixed-rate bond purchases in its defence)

In the forward guidance, there could be a hint of some sort of change coming as the Bank of Japan comes under pressure from government and businesses to help combat the very weak yen. Such an adjustment would be minor, the BoJ can (and does) argue that monetary policy is the responsibility of the Ministry of Finance. Given the Federal Reserve

Federal Reserve

The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks around the world, the Fed is responsible for monetary policy, in this case in the United States. The Fed is one of the most watched and followed entities for forex traders, given its large impact on the US dollar. Originally founded in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the United States while strengthening a financial system for the country. Its general functions are to set and guide monetary policy and oversee the efficient functioning of the economy, both of which serve the public interest. by the Federal Reserve Board of Governors. The current interest rate and expectations of future interest rate changes can influence the value of the US dollar. For example, if traders anticipate a change in interest rates based on announcements from the Board of Governors, this may cause the US dollar to appreciate or depreciate against other currencies. Forex traders should always be aware of Fed meetings and announcements and should follow developments within the central bank. Ultimately, the Federal Open Market Committee (FOMC) holds eight regular meetings per calendar year, where policies and interest rates are discussed and agreed upon. The best course of action is to stay on top of the news ahead of these meetings as a forex trader to make predictions on interest rates and whether to buy or sell the US dollar.

The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks around the world, the Fed is responsible for monetary policy, in this case in the United States. The Fed is one of the most watched and followed entities for forex traders, given its large impact on the US dollar. Originally founded in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the United States while strengthening a financial system for the country. Its general functions are to set and guide monetary policy and oversee the efficient functioning of the economy, both of which serve the public interest. by the Federal Reserve Board of Governors. The current interest rate and expectations of future interest rate changes can influence the value of the US dollar. For example, if traders anticipate a change in interest rates based on announcements from the Board of Governors, this may cause the US dollar to appreciate or depreciate against other currencies. Forex traders should always be aware of Fed meetings and announcements and should follow developments within the central bank. Ultimately, the Federal Open Market Committee (FOMC) holds eight regular meetings per calendar year, where policies and interest rates are discussed and agreed upon. The best course of action is to stay on top of the news ahead of these meetings as a forex trader to make predictions on interest rates and whether to buy or sell the US dollar.
Read this term is determined for further rate hikes to come, he doubts that any sort of minor concession from the BOJ will have much impact on USD/JPY anyway.

In the Outlook report:

  • the BOJ is expected to slightly upgrade its consumer inflation forecast for the year ending March 2023 and 2024
  • forecasts should still show that core consumer inflation will fall below the BOJ’s 2% target in the next fiscal year
  • downward revisions to GDP growth forecasts for the current fiscal year and beyond are also expected

At Kuroda’s press conference, the governor is likely to wink at concerns over yen weakness, repeating comments that a rapid fall in the yen is negative for the economy and that he, along with the Ministry of Finance officials will continue to closely monitor its movements and impact.