BoJ:pushing 2% target out - Scotiabank

Analysts at Scotiabank noted that the BoJ’s widely anticipated policy hold delivered little in terms of FX movement as the bank’s outlook extended the anticipated time frame for achieving the 2% price stability target.

Key Quotes:

"The CPI forecast was softened throughout the projection period while GDP forecasts were left unchanged. Yield spreads have failed to deliver meaningful JPY weakness since early October, and the 2Y U.S.-Japan spread is steady around 110bpts. We note the potential for broader market turbulence into upcoming risks (Fed, payrolls, U.S. election) and highlight JPY’s vulnerability to knee-jerk, haven-driven gains in periods of risk aversion."