Derek Holt, Research Analyst at Scotiabank, suggests that only five out of 40 economists expect the Bank of Japan to cut its policy rate deeper into negative territory on Tuesday. Key Quotes “If the fact that the ECB did more than expected is any guide, then there is the potential for greater than expected action from the BoJ. Most economists think a further cut is likely but not until April or June or perhaps July. Monetary policy has flooded the world with idled liquidity and in order to unleash it policy makers are now relying upon a liquidity tax with highly uncertain effects that are now requiring a complex patchwork arrangement of offsetting measures in order to stem the effects on bank profitability as the ECB has done. Where this all lands remains uncertain but the core issue remains demand — and whether pushing rates so low is still imposing damage upon the lending cycle by removing term incentives to take risk.” For more information, read our latest forex news.