8 Apr 2015
BoJ keeps policy on hold, no easing in sight yet – Danske
FXStreet (Barcelona) - Reviewing the BoJ policy meeting, Senior Analyst at Danske Bank, Flemming J. Nielsen, comments that the central bank has not become more dovish in spite of recent soft Japanese data, which suggests that further easing measures are not so near.
Key Quotes
“Bank of Japan (BoJ) as expected did not announce any new easing measures in connection with the close of its two-day monetary meeting this morning. The target for the annual expansion of the monetary base was maintained at JPY80trn and, as in the previous meeting, one board member dissented, arguing that the expansion of the balance sheet is too aggressive and more time is needed to reach the 2% inflation target.”
“There were only minor changes in the statement compared with the previous meeting’s statement.”
“It is slightly surprising that the statement has not become a bit more dovish in light of the recent disappointing data from Japan. This suggests that the BOJ is still far from a tipping point for more easing measures and for that reason JPY has also strengthened a bit in the wake of the announcement.”
Key Quotes
“Bank of Japan (BoJ) as expected did not announce any new easing measures in connection with the close of its two-day monetary meeting this morning. The target for the annual expansion of the monetary base was maintained at JPY80trn and, as in the previous meeting, one board member dissented, arguing that the expansion of the balance sheet is too aggressive and more time is needed to reach the 2% inflation target.”
“There were only minor changes in the statement compared with the previous meeting’s statement.”
“It is slightly surprising that the statement has not become a bit more dovish in light of the recent disappointing data from Japan. This suggests that the BOJ is still far from a tipping point for more easing measures and for that reason JPY has also strengthened a bit in the wake of the announcement.”