Appropriate for BOJ to clarify policy stance is titled to monetary accommodation by indicating there will be a downward bias in policy rates.
Desirable for forward guidance to show a decline in rate is not acceptable, its context is specific and the bank commits itself to conducting based on concrete conditions.
Necessary for BOJ not to hesitate to take additional easing measures if there is a greater possibility momentum will be lost.
Can’t be said households’ and firms’ expectations have been robust.
BOJ should communicate clearly it will continue with powerful monetary easing given that achieving price stability target will take time.
Meanwhile, USD/JPY keeps its range around 109.20 on the BOJ's headlines, modestly flat in early Asia.