US Fed & BoJ policy decision to be watched out for

Global markets are eyeing the policy stance to be taken by both BoJ and the US Fed.

Even as FIIs are believed to be taking cover just in case if there is US Fed rate hike, the consensus seems to be building that the US Fed may hold the rates steady and BoJ may ease the policy rates.

The BoJ statement may have a bigger impact on the markets and the event needs to be tracked closely.The BoJ may further ease its ultra-loose policies this week and the Asian markets are already gaining based on easing expectations.

The Japanese economy is struggling to overcome from its chronic stagnation. Experts believe BoJ may reduce interest rates further and get deeper in negative rates environment and also recalibrate its asset purchase programme.

Globally, stakeholders will be expecting some action from BoJ, as the central bank of Japan has been reluctant to bite the bullet when it comes to easing interest rates further.