8 Apr 2015
BOJ expected to leave policy unchanged - RBS
FXStreet (Bali) - The Bank of Japan holds monetary policy stance is expected to be left unchanged today, notes Brian Daingerfield, FX Trading Strategist at RBS.
Key Quotes
"During the Asia session, the Bank of Japan holds its first of two monetary policy meetings in April where we expect the monetary policy stance to be left unchanged."
"Since the Bank last met in mid-March, core inflation (ex fresh food) fell to just 2.0% y/y, or 0.0% when adjusted for the BoJ’s assumed 2.0% impact of the April 2014 consumption tax hike."
"Still, we think the BoJ will continue to cite a tightening labour market and that a pick-up in expected wage inflation will support their view that inflation picks up gradually over the forecast horizon."
"The Shunto spring wage rounds appear to have resulted in broad-based increases in wages, both at high profile large corporations and in small and midsized firms – Japan News reported over the weekend that 90% of labour unions at small and midsized manufacturers reported base salary hikes this spring."
"In any event, we see any change in the BoJ’s stance as more likely in the late April meeting than at tomorrow’s meeting because the late-April meeting coincides with the Semi-Annual Outlook Report and a reassessment of the BoJ’s medium-term inflation forecasts."
Key Quotes
"During the Asia session, the Bank of Japan holds its first of two monetary policy meetings in April where we expect the monetary policy stance to be left unchanged."
"Since the Bank last met in mid-March, core inflation (ex fresh food) fell to just 2.0% y/y, or 0.0% when adjusted for the BoJ’s assumed 2.0% impact of the April 2014 consumption tax hike."
"Still, we think the BoJ will continue to cite a tightening labour market and that a pick-up in expected wage inflation will support their view that inflation picks up gradually over the forecast horizon."
"The Shunto spring wage rounds appear to have resulted in broad-based increases in wages, both at high profile large corporations and in small and midsized firms – Japan News reported over the weekend that 90% of labour unions at small and midsized manufacturers reported base salary hikes this spring."
"In any event, we see any change in the BoJ’s stance as more likely in the late April meeting than at tomorrow’s meeting because the late-April meeting coincides with the Semi-Annual Outlook Report and a reassessment of the BoJ’s medium-term inflation forecasts."