16 Jun 2015
BoJ Meeting: Focus on Kuroda’s comments on JPY – Nomura
FXStreet (Barcelona) - The Research Analysts at Nomura share their key observations for the Bank of Japan’s monetary policy meeting this week.
Key Quotes
“The core CPI year-on-year rate of increase has held at around 0%, but this does not necessarily point to a major decline in inflation expectations. Economic indicators as a whole also suggest that the Japanese economy is following a steady recovery track.”
“We expect the BOJ to maintain its view that price inflation continues to improve steadily and to make no adjustments to current monetary policy.”
“We think the primary focus will be on analysing comments made by BOJ Governor Haruhiko Kuroda to Japanese lawmakers at an appearance at the Diet on 10 June. The Governor said that further depreciation by the yen on a real effective exchange rate basis would be unlikely in present circumstances. These comments were construed by the market as an attempt to slow the yen's rapid depreciation against the US dollar, causing it to rebound strongly. We expect the Governor to have to field questions on these comments during his regular monthly press conference, and we will be closely monitoring his responses.”
Key Quotes
“The core CPI year-on-year rate of increase has held at around 0%, but this does not necessarily point to a major decline in inflation expectations. Economic indicators as a whole also suggest that the Japanese economy is following a steady recovery track.”
“We expect the BOJ to maintain its view that price inflation continues to improve steadily and to make no adjustments to current monetary policy.”
“We think the primary focus will be on analysing comments made by BOJ Governor Haruhiko Kuroda to Japanese lawmakers at an appearance at the Diet on 10 June. The Governor said that further depreciation by the yen on a real effective exchange rate basis would be unlikely in present circumstances. These comments were construed by the market as an attempt to slow the yen's rapid depreciation against the US dollar, causing it to rebound strongly. We expect the Governor to have to field questions on these comments during his regular monthly press conference, and we will be closely monitoring his responses.”