30 Apr 2014
Expectations for BoJ easing pushed back - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ sees market expectations for further monetary easing by the BoJ have been pushed back.
Key Quotes
"There has already been some shifting of market expectations away from any imminent BOJ monetary easing and it seems likely that the projections in the semi-annual report on inflation will be taken as further evidence that the BOJ is comfortable with its stance in lifting inflation over the medium-term and hence market expectations on BOJ monetary easing are likely to be pushed back further again. The yen has weakened a touch on Governor Kuroda’s comment that there are disagreements over the timing of when the 2% inflation target is reached."
"Three members dissented to the outlook report. Still, there is no dramatic shift here from the BOJ – the forecasts for FY14 and FY15 on inflation are unchanged."
"No doubt the BOJ will be encouraged by the cash earnings data released earlier today. The annual increase in cash earnings was 0.7% in March, which was the highest increase since March 2012, albeit largely driven by a 14.8% rise in the bonus portion."
Key Quotes
"There has already been some shifting of market expectations away from any imminent BOJ monetary easing and it seems likely that the projections in the semi-annual report on inflation will be taken as further evidence that the BOJ is comfortable with its stance in lifting inflation over the medium-term and hence market expectations on BOJ monetary easing are likely to be pushed back further again. The yen has weakened a touch on Governor Kuroda’s comment that there are disagreements over the timing of when the 2% inflation target is reached."
"Three members dissented to the outlook report. Still, there is no dramatic shift here from the BOJ – the forecasts for FY14 and FY15 on inflation are unchanged."
"No doubt the BOJ will be encouraged by the cash earnings data released earlier today. The annual increase in cash earnings was 0.7% in March, which was the highest increase since March 2012, albeit largely driven by a 14.8% rise in the bonus portion."