22 May 2015
Bank of Japan: Odds for additional action quite low - RBS
FXStreet (Bali) - Brian Daingerfield, FX Trading Strategist at RBS, notes that the odds that the Bank of Japan, at its monetary policy meeting today, will take additional action, are quite low.
Key Quotes
"The Bank of Japan meets but the odds that the BoJ takes additional action at their policy meeting tonight are quite low. The BoJ has maintained a steadfast neutral stance on policy."
"Even before 1Q GDP growth came in stronger than market expectations, BoJ Governor Kuroda told reporters last week that he doesn’t think that further easing is needed now, and Nikkei News reported this week that the BoJ is considering revising up their growth outlook."
"While new easing may not be coming from the BoJ, evidence that the portfolio rebalancing channel of the current QE program remains strong, and persistent BoJ buying has likely helped keep Japanese yields contained despite corrections in other fixed income markets. A widening yield spread could put upward pressure on USD/JPY."
Key Quotes
"The Bank of Japan meets but the odds that the BoJ takes additional action at their policy meeting tonight are quite low. The BoJ has maintained a steadfast neutral stance on policy."
"Even before 1Q GDP growth came in stronger than market expectations, BoJ Governor Kuroda told reporters last week that he doesn’t think that further easing is needed now, and Nikkei News reported this week that the BoJ is considering revising up their growth outlook."
"While new easing may not be coming from the BoJ, evidence that the portfolio rebalancing channel of the current QE program remains strong, and persistent BoJ buying has likely helped keep Japanese yields contained despite corrections in other fixed income markets. A widening yield spread could put upward pressure on USD/JPY."