Wells Fargo APAC chief strategist in Singapore Chidu Narayanan said the Bank of
Japan’s decision lacked hawkish substance and is likely to push USD/JPY higher
and depress short-end JPY yields. He noted two of the most dovish board members
voted against, which does not support expectations of rapid BOJ tightening. The
statement appeared hawkish on the surface but fell short relative to pre-meeting
market pricing.
