13 Jul 2015
BOJ to remain quiet this week - Nomura
FXStreet (Mumbai) - Research Analysts at Nomura believe that Bank of Japan (BOJ) monetary policy decision is expected to remain quiet this week ‘as key drivers of underlying inflation momentum remain relatively strong, the BOJ is unlikely to rush to ease now’.
Key Quotes:
“The BOJ is expected to leave its policy unchanged again at the meeting next week (14-15 July). Even though core inflation in Japan remains close to zero, the BOJ's two quarterly surveys on inflation expectations (BOJ Tankan and household surveys) both suggest resilient inflation expectations, even amid a slowdown in actual inflation.”
“The BOJ is considering downgrading its FY2015 growth forecast in its interim update of the outlook report next week, according to Nikkei (unconfirmed).”
“The BOJ's decision to leave its policy unchanged could be slightly negative for USD/JPY, but its impact would be limited, and risk sentiment will remain the key driver for USD/JPY next week.”
“Governor Kuroda's press conference will likely focus more on the foreign situation, especially developments on Greece and China.”
“Governor Kuroda will likely state the Bank will keep monitoring developments in China and Greece closely, and is likely to repeat the Bank will not hesitate to adjust policy when necessary.”
Key Quotes:
“The BOJ is expected to leave its policy unchanged again at the meeting next week (14-15 July). Even though core inflation in Japan remains close to zero, the BOJ's two quarterly surveys on inflation expectations (BOJ Tankan and household surveys) both suggest resilient inflation expectations, even amid a slowdown in actual inflation.”
“The BOJ is considering downgrading its FY2015 growth forecast in its interim update of the outlook report next week, according to Nikkei (unconfirmed).”
“The BOJ's decision to leave its policy unchanged could be slightly negative for USD/JPY, but its impact would be limited, and risk sentiment will remain the key driver for USD/JPY next week.”
“Governor Kuroda's press conference will likely focus more on the foreign situation, especially developments on Greece and China.”
“Governor Kuroda will likely state the Bank will keep monitoring developments in China and Greece closely, and is likely to repeat the Bank will not hesitate to adjust policy when necessary.”