BOJ facing perilous policy decision over inflation target

Tokyo

SEVERE turbulence in global financial markets is expected this week. Against this backdrop, the Bank of Japan's (BOJ's) Policy Board faces the perilous task on Wednesday of deciding whether to adjust monetary course - without creating fresh panic in foreign exchange trading and sending Tokyo stocks into a tailspin.

The BOJ meeting also comes at a time when the European Central Bank (ECB) is expected to announce finally a quantitative easing (QE) programme to stave off deflation, a move which could trigger fresh falls in the euro and send the Swiss franc soaring even beyond its dramatic surges last week.

While no direct comparisons are being drawn between the Swiss action and the situation in Japan or the euro area, the franc's dramatic rise has warned markets…