Tohru Sasaki, chief strategist at Fukuoka Financial Group and former BOJ official, said markets were surprised by a slight reduction in JGB purchase size for the period after April next year—markets had expected no change—and that the BOJ then held volumes steady. He said focus should be on how BOJ Deputy Governor Uchida frames future policy at the press conference; Uchida is unlikely to signal any major shift and markets may interpret his remarks as dovish. Sasaki warned the Finance Ministry co

Tohru Sasaki, chief strategist at Fukuoka Financial Group and former BOJ official, said markets were surprised by a slight reduction in JGB purchase size for the period after April next year—markets had expected no change—and that the BOJ then held volumes steady. He said focus should be on how BOJ Deputy Governor Uchida frames future policy at the press conference; Uchida is unlikely to signal any major shift and markets may interpret his remarks as dovish. Sasaki warned the Finance Ministry could intervene if the yen stays weak, including on the day of a BOJ rate hike. He added Governor Ueda’s health is a key variable: if Ueda were replaced for health reasons, the successor would likely be dovish.