Before you know it, the Bank of Japan will be delivering their monetary policy announcement. Far less attention has been paid to the BoJ announcement than last’s ECB or RBNZ meetings and for good reason. For the past few years, the central bank has been more reactive than proactive and never one to opt for surprises. The following table shows how economic data has fared since the last meeting and its clearly been mixed. Given the lack of clarity on the state of the economy, there is very little reason for the central bank to act. However the economy is improving which will reduce pressure on the central bank to increase stimulus. A stronger recovery is possible in the coming months as production returns to normal levels – therefore we would not preclude the possibility of optimistic comments from the BoJ.