17 Feb 2015
BoJ could keep the status quo during H1 2015 – UOB Group
FXStreet (Edinburgh) - Analysts at UOB Group believes the Bank of Japan will refrain from announce any changes in its current monetary policy at least during the first half of 2015.
Key Quotes
“The immediate event to focus on for Japan will be the upcoming BOJ policy decision this Wednesday (18 Feb) but we believe the BOJ is unlikely to do more in February & probably maintain the status quo position at least in 1H 2015 after its October 2014 stimulus addition”.
“The latest set of GDP data does not alter our view. Instead, our view for BOJ to stay on pause was further reinforced by a Bloomberg report last Thursday (12 Feb) which cited unnamed sources that the BOJ policy makers viewed further monetary easing to shore up inflation as a counterproductive step for now, amid concern it could trigger declines in the yen that in turn would damage confidence”.
“The sources also said that BOJ was also arguing against expanding already-record stimulus citing the recent gains in exports and production, along with a boost from fiscal policy”.
Key Quotes
“The immediate event to focus on for Japan will be the upcoming BOJ policy decision this Wednesday (18 Feb) but we believe the BOJ is unlikely to do more in February & probably maintain the status quo position at least in 1H 2015 after its October 2014 stimulus addition”.
“The latest set of GDP data does not alter our view. Instead, our view for BOJ to stay on pause was further reinforced by a Bloomberg report last Thursday (12 Feb) which cited unnamed sources that the BOJ policy makers viewed further monetary easing to shore up inflation as a counterproductive step for now, amid concern it could trigger declines in the yen that in turn would damage confidence”.
“The sources also said that BOJ was also arguing against expanding already-record stimulus citing the recent gains in exports and production, along with a boost from fiscal policy”.