Ears out for BoJ noise - Scotiabank

Analysts at Scotiabank explained that recent comments from BoJ Deputy Governor Nakaso have focused on the costs of the BoJ’s accommodation, specifically its impact on bank profits. 

Key Quotes:

"Nakaso also touched upon the importance of communication with regards to the BoJ’s exit strategy. The comments have built upon the recent shift in tone from both Gov. Kuroda and board member Suzuki."

"Messaging has generally centred on a cost-benefit analysis of the current policy stance and the need to recalibrate on the back of progress toward the BoJ’s inflation target."

"BoJ risk will remain elevated over the next 24 hours as we look to speaking engagements from Deputy Governor Iwata (7pm ET) and board member Harada (8:30pm ET)."