19 Jan 2015
BoJ meeting expectations - BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch noted the BoJ meeting this week and offers their expectations.
Key Quotes:
"When the Bank of Japan's Monetary Policy Board meets on 20-21 January, it will conduct an interim evaluation of the forecasts in the previous Outlook Report. In light of the oil-price decline, the BoJ is likely to lower its FY15 inflation forecast."
"Nevertheless, we expect the BoJ to maintain the current monetary policy framework regarding asset purchases due to two factors: (1) the BoJ likely believes low oil prices will cause only a temporary dip in inflation, which is expected to revive in 2H15; and (2) the BoJ is still waiting to see the effects of the stronger monetary easing it introduced on 31 October."
Key Quotes:
"When the Bank of Japan's Monetary Policy Board meets on 20-21 January, it will conduct an interim evaluation of the forecasts in the previous Outlook Report. In light of the oil-price decline, the BoJ is likely to lower its FY15 inflation forecast."
"Nevertheless, we expect the BoJ to maintain the current monetary policy framework regarding asset purchases due to two factors: (1) the BoJ likely believes low oil prices will cause only a temporary dip in inflation, which is expected to revive in 2H15; and (2) the BoJ is still waiting to see the effects of the stronger monetary easing it introduced on 31 October."