19 Dec 2014
BOJ raises economic assessment on industrial output, exports, and housing investment – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that today’s BoJ’s key risk event resulted in the Bank raising its assessment on industrial output, exports and housing investment, while noting that Japan continues on its way for a gradual recovery.
Key Quotes
“Broad-based risk-on rally that gave US stocks their biggest two-day gain of the year continued to reverberate in Asia. USD/JPY hit a fresh 1-week high of 119.40, helping Nikkei225 build on its gains.”
“Bank of Japan rate was the key risk event of the session. Despite the recent disappointment in GDP figures, the BOJ actually raised its assessment on Industrial Output, Exports, and Housing Investment. Policy settings remained unchanged otherwise, and board member Kiuchi was still the lone dissenter, favoring policy stance before Oct 31st easing. BOJ reiterated economy continued to recover moderately as a trend, but also added the "decline in demand following front-loaded increase before tax hike is waning as a whole”.”
“BOJ also said exports have shown signs of picking up and housing investment/industrial output are bottoming out. On inflation, the BOJ reiterated CPI expectations for the near term remain around 1%. Earlier, Fin Min Aso also noted Japan economy is continuing gradual recovery.”
“Separately, a Nikkei report speculated the govt's fiscal stimulus is seen around ¥3.5, above ¥2-3T estimated initially. Cabinet is expected to approve the stimulus package as early as Dec 27th, with the Govt not expected to undertake any new debt issuance to fund the package.”
Key Quotes
“Broad-based risk-on rally that gave US stocks their biggest two-day gain of the year continued to reverberate in Asia. USD/JPY hit a fresh 1-week high of 119.40, helping Nikkei225 build on its gains.”
“Bank of Japan rate was the key risk event of the session. Despite the recent disappointment in GDP figures, the BOJ actually raised its assessment on Industrial Output, Exports, and Housing Investment. Policy settings remained unchanged otherwise, and board member Kiuchi was still the lone dissenter, favoring policy stance before Oct 31st easing. BOJ reiterated economy continued to recover moderately as a trend, but also added the "decline in demand following front-loaded increase before tax hike is waning as a whole”.”
“BOJ also said exports have shown signs of picking up and housing investment/industrial output are bottoming out. On inflation, the BOJ reiterated CPI expectations for the near term remain around 1%. Earlier, Fin Min Aso also noted Japan economy is continuing gradual recovery.”
“Separately, a Nikkei report speculated the govt's fiscal stimulus is seen around ¥3.5, above ¥2-3T estimated initially. Cabinet is expected to approve the stimulus package as early as Dec 27th, with the Govt not expected to undertake any new debt issuance to fund the package.”