Today’s BoJ decision is a good lesson on source reports. We’ve seen this happen so many times, where info is leaked to markets on what the BoJ is planning to do at an upcoming meeting, only to then see the BoJ not follow through or do something different.
There were a few participants expecting the bank to announce a reduction in bond purchases today after a report from Nikkei on the matter.
But as Eamonn rightly mentioned here, there is a big difference between considering something and actually doing something.
So, there are two lessons here. The first is to take source reports with a pinch of salt, especially when they deal with the BoJ. The second lesson is to always be weary of the BoJ.
BoJ credibility