BoJ most unlikely to change policy - BBH

Bank of Japan meets in the week ahead and is most unlikely to change policy, according to analysts at BBH.  

Key Quotes

“It may also be a little early to seriously discuss a more flexible approach to the 10-year yield target.  Also, there is nothing quite like have critics on the governing board that may want to take new action to reach the 2% inflation target to make Kuroda appear cautious.”  

“Less appreciated is Abe's tax initiative.  At the end of last week, the government announced a targeted corporate tax cut and progressive changes individual taxes.  The corporate tax cut was for companies that "sharply increased wages."   If businesses follow the government's tax incentives, the statutory rate could fall to 20% from 29.7% presently.”  

“The basic income allowance will be increased.  This tax break will be funded by raising the income tax on incomes above JPY8.5 mln (~$75.5k).  Taxes are also likely to increase for pensioners with incomes greater than JPY10 mln.”