"The biggest downside risk is the sovereign problems in Europe"
- Mari Iwashita, chief market economist at SMBC Nikko Securities Inc.
The Bank of Japan February 14 is forecast to maintain the benchmark rate at near zero and keep its asset purchasing program at 55 trillion yen amid signs the global economy including the U.S. is picking up.
"The biggest downside risk is the sovereign problems in Europe," said Mari Iwashita, chief market economist at SMBC Nikko Securities Inc. in Tokyo. Policy makers should "save the card of additional accommodative policies for March or April," the analyst said.
"The economy may have dipped into a contraction in the fourth quarter, but it would be temporary," said Seiji Adachi, a senior economist at Deutsche Securities Inc. in Tokyo. "There's no need to be overly pessimistic" as the global economy including the U.S. is gaining steam, Adachi said.
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