Nearly 90 percent of economists expect the Bank of Japan to further ease its grip on credit within six months, according to a Kyodo News survey released Thursday.
Some 88 percent of private-sector economists said they expect such a move, up 29 percentage points from the previous poll, conducted Oct. 2. The survey canvassed 25 people.
They said the BOJ will likely introduce credit-easing measures to prevent unrest in Japan's financial system that is expected to grow out of the stepped-up disposal of bad loans held by banks and the slump in the stock market.
The finding indicates that although the BOJ Policy Board decided Oct. 30 on additional measures to ease monetary conditions -- such as an increase in outright purchases of long-term government bonds -- financial markets are expecting more easy-money measures to come from central bank policymakers.
Among other findings, 52 percent of the 25 economists expect the BOJ to resort to additional credit-easing steps within three months, up 11 percentage points from the last poll, while 92 percent believe it will happen within one year, up 29 points.
With regard to specific measures the BOJ is expected to take, Hideo Kumano of the Dai-ichi Life Research Institute said the central bank is likely to increase outright purchases of long-term government bonds toward the end of the current fiscal year.
Takehiro Sato of Morgan Stanley Japan Ltd. said the BOJ may be forced to buy shares as part of its open-market operations.