The Bank of Japan plans to keep the interest rate at the same level

Haruhiko Kuroda, Governor of the Bank of Japan, appears determined to carry out his mission on inflation, ignoring market and political pressure.

100% of economists polled by Bloomberg believe that as he enters the last six months of his ten-year tenure at the head of the Central Bank, Kuroda will keep a negative interest rate on Friday, making the Bank of Japan the last such central bank of all remaining in the world.

This steadfastness may lead to a new round of decline in the weakened yen and another round of currency interventions by Japanese authorities. In addition, this may be a reason for the subsequent increase in purchases of the BOJ’s bonds.

According to Hiromichi Shirakawa, chief Economist for Japan at Credit Suisse Group AG, the Bank of Japan is finding it increasingly difficult to keep the balance. If Kuroda does not adjust the policy or his messages, the subsequent fall of the yen, as a month ago, is beyond doubt, he added.