30 Apr 2015
BoJ preview: Semi-annual economic outlook eyed - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, shares his view on the upcoming Bank of Japan monetary policy meeting, noting that this month's release is more interesting as it includes the semi-annual economic outlook.
Key Quotes
"The Bank of Japan policy meeting concludes today, with the decision likely any time after about 11:30am Tokyo (12:30am Syd/10:30am Sing/HK). There is more interest in this meeting than most, given it includes the semi-annual economic outlook, where the inflation forecast for FY15 is expected to be cut from 1% to 0.5-1.0%."
"However, Nikkei News suggests the BoJ will project inflation to rise to 2% in FY16, consistent with no change in policy stance today. This might produce at least a kneejerk dip in USD/JPY. There is some chance of a tweak in the composition of asset purchases (more ETFs) but a major change seems a low risk (not zero!)."
Key Quotes
"The Bank of Japan policy meeting concludes today, with the decision likely any time after about 11:30am Tokyo (12:30am Syd/10:30am Sing/HK). There is more interest in this meeting than most, given it includes the semi-annual economic outlook, where the inflation forecast for FY15 is expected to be cut from 1% to 0.5-1.0%."
"However, Nikkei News suggests the BoJ will project inflation to rise to 2% in FY16, consistent with no change in policy stance today. This might produce at least a kneejerk dip in USD/JPY. There is some chance of a tweak in the composition of asset purchases (more ETFs) but a major change seems a low risk (not zero!)."