Bank of Japan will not change its policy at the meeting on December 20

The Bank of Japan meeting will be on December 20. It is planned to keep interest rates ultra-low and the dovish forecast. This signals an intention to avoid stimulus cancellation until the economy is able to withstand a slowdown in global growth.

Bank of Japan Governor Haruhiko Kuroda says that it is necessary to apply a soft policy because Japan's economy just started recovering from the pandemic.

Kuroda's briefing will give investors an idea about the prospects of the policy. The second five-year term of Kuroda will end in April. It is quite possible that the Bank of Japan will make changes in its policy after that.

Chief Economist at Totan Research, Izuru Kato, said that it is more likely that the policy will remain the same after next week and that markets will monitor any changes in how the bank will describe the prospects for price growth.

He added that Bank of Japan policy corrections could be made about June or July of next year if the condition of Japan's economy is quite good and the U.S. avoids a deep recession.