11 Apr 2014
Same message (inaction) from BoJ minutes - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, remarks the unchanged tone from today's BoJ minutes.
Key Quotes
"The only news from Japan today was the release of the BOJ minutes from the meeting that took place on 11th March. The broad message was unchanged with the BOJ maintaining a view of economic recovery and that the monetary stance of the BOJ was supporting the economy."
"Clearly there is no sense from these minutes of any concern over the outlook for the economy that would indicate a need to change monetary policy. The minutes did note the potential hit from the sales tax increase and that the impact needed to be monitored – but the message that ‘our monetary stance is working’ was very clear."
"This of course was evident again from Governor Kuroda in his most recent press conference following this week’s policy meeting. We continue to expect USD/JPY to remain well supported close to current levels before moving higher as the US economy strengthens but the longer the Japanese equity markets under-perform the US, the greater the risk is that we could get further yen gains beyond our current expectations."
Key Quotes
"The only news from Japan today was the release of the BOJ minutes from the meeting that took place on 11th March. The broad message was unchanged with the BOJ maintaining a view of economic recovery and that the monetary stance of the BOJ was supporting the economy."
"Clearly there is no sense from these minutes of any concern over the outlook for the economy that would indicate a need to change monetary policy. The minutes did note the potential hit from the sales tax increase and that the impact needed to be monitored – but the message that ‘our monetary stance is working’ was very clear."
"This of course was evident again from Governor Kuroda in his most recent press conference following this week’s policy meeting. We continue to expect USD/JPY to remain well supported close to current levels before moving higher as the US economy strengthens but the longer the Japanese equity markets under-perform the US, the greater the risk is that we could get further yen gains beyond our current expectations."