Bank of Japan may shift from ultra-easy policy in 2023

According to the Reuters poll, nearly 50% of the respondents believe that the Bank of Japan may conduct a review of its ultra-easy monetary policy between March and October 2023. 

The poll of 26 economists showed that 11 of them anticipated the announcement of a review between March and October next year. 13 economists see no adjustments to the Bank of Japan's massive stimulus programme until at least 2024. 2 economists expect the central bank to take additional easing actions. 

According to 22 economists, there is a 25% chance that the Bank of Japan will unwind its ultra-easy policy or conduct its assessment before the central bank gets a new governor. 

Ayako Fujita, chief economist at JPMorgan Securities, noted that the Bank of Japan wouldn’t pre-announce a review of the monetary policy framework. Such a move could trigger a liquidity problem in the government securities market, and Australia is a clear example of it. She said that the Bank of Japan could revise the policy in terms of bond yields and set the cap above 0.25% in the next quarter.