More Caution Expected from the Bank of Japan
The Bank of Japan will also be holding a monetary policy meeting, but with interest rates already at 0.5 percent, there is not much room for the central bank to move interest rates.
Earlier this week, Japanese business confidence fell to a 4 year low. Although workers are benefitting from higher wages, companies are beginning to grow more pessimistic. We believe that the shift in the corporate sector due to the recent strength of the Japanese Yen should force the Bank of Japan to downgrade their economic outlook. A lot of Japanese data will be released next week including the Eco Watchers survey and the trade / current account balance.