Jane Foley, FX Strategist at Rabobank, notes that the BoJ has begun it 2 day policy meeting in an environment of rising hostility against its January decision to push rates into negative territory. Key Quotes “The move stimulated a discussion as to the impact of negative rates on the banking system and also brought accusations that the policy is a blatant encouragement of currency wars. PM Abe has reportedly been distancing himself from the BoJ’s negative rate policy amid speculation that it could have created a rift between himself and BoJ Governor Kuroda. Given the apparent failure of BoJ policies to lift inflation and keep the economy from stalling again, PM Abe has announced that he will appoint a panel to consider fresh budget spending. In the midst of the furore about its interest rate policy, it seems unlikely that the BoJ can cut rates again in the coming months. Instead the market is debating whether the BoJ can expand its enormous asset purchases programme any further.” For more information, read our latest forex news.