15 Sep 2015
JPY: Lower assessment of exports and production by BoJ - MUFG
FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, notes that the BoJ had modestly downgraded their assessment of Japan’s economy stating that it “continued to recover moderately, although exports and production are affected by the slowdown in emerging economies”.
Key Quotes
“Exports and production were described recently as having been “more or less flat, due to the effect of the slowdown in emerging economies”. The description of corporate profit growth was more positive which was described as having continued to improve “markedly” supporting a moderate increasing trend for business fixed investment.”
“The BoJ still expects Japan’s economy to continue to recover moderately. The BoJ’s updated assessment of Japan’s economy still appears relatively upbeat in comparison to the recent loss of growth momentum which reduces the likelihood of further monetary easing in the near-term providing support for the yen. More risk-averse global trading conditions are allowing the yen to trade on a firmer footing in the near-term.”
Key Quotes
“Exports and production were described recently as having been “more or less flat, due to the effect of the slowdown in emerging economies”. The description of corporate profit growth was more positive which was described as having continued to improve “markedly” supporting a moderate increasing trend for business fixed investment.”
“The BoJ still expects Japan’s economy to continue to recover moderately. The BoJ’s updated assessment of Japan’s economy still appears relatively upbeat in comparison to the recent loss of growth momentum which reduces the likelihood of further monetary easing in the near-term providing support for the yen. More risk-averse global trading conditions are allowing the yen to trade on a firmer footing in the near-term.”