The outcome of this week's Bank of Japan (BOJ) meeting will arguably be the most closely-watched in years given high expectations for a radical monetary policy to end two decades of deflation. So, will Japan's central bank deliver or disappoint?
There's no doubt that the stakes are high: the benchmark Nikkei stock index has surged 40 percent and the yen has tumbled more than 15 percent since mid-November on expectations for aggressive monetary easing.
"The run-up in Japanese markets since November has all been about words of intention, the action hasn't happened yet," said Chong Yoon-Chou, investment director at Aberdeen Asset Management. "And we've only just got a new central bank governor, although he is talking the right talk at the moment."
Haruhiko Kuroda became BOJ Governor last month with a mandate from Prime Minister Shinzo Abe to ditch the central bank's cautious approach and adopt bold measures to end the deflation that has dogged Japan's economy for years.
(Read More: How Closely Is Kuroda Emulating Bernanke?)
The central bank kicks off a two-day meeting on Wednesday. Measures economists expect Kuroda to unveil on Thursday, when the meeting ends, include boosting asset purchases, buying longer-dated government bonds and committing to the open-ended purchase of assets immediately.
Kuroda told Japan's lower house of parliament on Tuesday the BOJ would do "whatever it takes" to achieve its 2 percent inflation target. In January, the BOJ bowed to pressure and adopted that target and promised to carry out unlimited asset purchases to kick start the economy from next year.
Japan, the world's third largest economy, has suffered from persistent deflation and has slipped in and out of recession in recent years. The latest closely-watched Tankan business confidence survey showed corporate sentiment remains poor despite a steep fall in the yen.
(Read More: Why Are Japan Manufacturers So Bearish?)