

Yujiro notes: "The Bank has eased four times in five months since September, which is an extraordinary pace of easing for the BOJ. Thus, the Bank wants to evaluate the impact of previous easing on the economy. Nikkei and a few other local media also reported the Bank is likely to leave policy unchanged next week."

Yujiro adds: "Reaction against the decision will be limited, as the focus is now shifting to easing under the new BOJ leadership. A slight disappointment is possible after an announcement of no easing, but demand for dip buying is expected to remain strong."