Despite stronger than expected economic growth in the first quarter of 2005, the Bank of Japan is expected to stick to a monetary-easing framework until it sees more evidence the economy is on route to stable recovery, BOJ watchers said Tuesday.
The central bank is also likely to leave its liquidity target untouched at a two-day Policy Board meeting starting Thursday, although some members may vote against the decision again as they did at previous meetings, the analysts said.
Since January 2004, the BOJ has maintained its liquidity target for the outstanding balance of current account deposits held by private financial institutions at the central bank in the range of 30 trillion yen to 35 trillion yen.