7 Aug 2013
Flash: Yen Bid Ahead of BOJ Decision - BBH
FXstreet.com (London) - Marc Chandler, Global Head of Currency Strategy at BBH highlights the BoJ.
Key Quotes:
“The BOJ's 2-day meeting concludes tomorrow. Although surveys show not expectations for new initiatives, a Bloomberg poll found that the vast majority of those queried expect the BOJ to increase the amount of its asset purchases in the coming months. Five see the action coming in the fourth quarter this year, 15 in H1 14, and 5 in H2 14 or later”.
“The BOJ has revised up its assessment of the economy for seven consecutive months, but recent data has been disappointing and growth next year is anticipated to slow, partly under the weight of the controversial retail sales tax that is to be implemented in April 2014 and another hike in Oct 2015”.
“The BOJ has successfully managed to stabilize the JGB market after a rise in both yields and volatility followed the announcement of very aggressive asset purchase program in about four months ago. The BOJ is buying JPY7 trillion (~$72 bln) a month of securities, mostly JGBs”.
Key Quotes:
“The BOJ's 2-day meeting concludes tomorrow. Although surveys show not expectations for new initiatives, a Bloomberg poll found that the vast majority of those queried expect the BOJ to increase the amount of its asset purchases in the coming months. Five see the action coming in the fourth quarter this year, 15 in H1 14, and 5 in H2 14 or later”.
“The BOJ has revised up its assessment of the economy for seven consecutive months, but recent data has been disappointing and growth next year is anticipated to slow, partly under the weight of the controversial retail sales tax that is to be implemented in April 2014 and another hike in Oct 2015”.
“The BOJ has successfully managed to stabilize the JGB market after a rise in both yields and volatility followed the announcement of very aggressive asset purchase program in about four months ago. The BOJ is buying JPY7 trillion (~$72 bln) a month of securities, mostly JGBs”.