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Should Kuroda be more like Draghi?

Tomohiro Ohsumi | Bloomberg | Getty Images

Most analysts expect no change to monetary policy when the Bank of Japan (BOJ) announces its decision on Thursday after a two-day meeting, but central bank governor Haruhiko Kuroda's style of communication could come under scrutiny, according to one analyst.

Nicholas Smith, Japan strategist at research house CLSA, said investors have been mostly dissatisfied with his uninspiring rhetoric so far, adding that Kuroda could benefit from taking a few lessons from his European Central Bank counterpart Mario Draghi.

"At the previous Bank of Japan meeting, he (Kuroda) said 'I think we've done enough for now, we shan't be doing any more' and I think most people felt that was an extremely poor way of putting things. What he really needed to say was 'we will do absolutely anything that is necessary' in very much a Draghi kind of way," added Smith.

(Watch This: Haruhiko Kuroda's Clean Break From the Past)

"It's just a different spin on the same thing but markets need to be encouraged," he added.

In July last year, at the height of the euro zone turmoil, Draghi promised markets he would do "whatever it takes" to save the euro, in a speech which boosted market sentiment across the region and eased fears of a break up of the single currency bloc.

According to Smith, if Kuroda were to use a stronger style of communication like Draghi did, Japanese stocks could get an even bigger boost.

"The implications of a more muscular BOJ, is that the currency markets back off and the yen weakens a little. Given the strong correlation between the yen and the stock market, I think markets would be encouraged by it... There is some chance that happens (this week)," added Smith.

While Kuroda's style of rhetoric may be criticized by some for its lack of 'oomph,' there is no doubt his actions have gone far in propping up the stock markets.

Japan's benchmark Nikkei has rallied 16 percent since Kuroda unveiled the world's most intense burst of stimulus on April 4, and is up 62 percent since last November when Shinzo Abe revealed his radical plan to overhaul the economy, known as Abenomics. The yen has seen a sharp fall in tandem, down 6 percent since April, and 22 percent since November.

(Read More: At last, inflation in Japan is speeding up)

The recent dramatic market moves are reason enough not to doubt Kuroda's approach, other analysts have argued.

"Considering the one-time announcement has changed market expectations and effectively improved economic conditions, we think the current BOJ communication style has been much clearer and stronger than the past," Long Hanhua Wang, Japan economist at the Royal Bank of Scotland.

(Read More: Sales tax hike is vital and will hurt Japan, says IMF)

And according to Masayuki Kichikawa, chief Japan economist at Merrill Lynch Japan Securities, it is not fair to compare Draghi with Kuroda as the economic scenarios they are dealing with are so different.

"(Draghi) has done a very good job in removing tail risks, but his job needs to be separated from the BOJ. What Kuroda and Draghi are trying to do is very different and their approach needs to be different," said Kichikawa.

"The Japanese problem is more chronic, in terms of (trying to tackle) persistent deflationary expectations shared by households and corporations. It is not something like the tail risk of a crisis," he added.

(Read More: How Closely Is Kuroda Emulating Bernanke?)

ByCNBC's Katie Holliday: Follow her on Twitter @hollidaykatie

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