30 Apr 2014
BoJ keeps its monetary stance intact - BTMU
FXStreet (Barcelona) - There was no room for surprises in today's BoJ announcements, commented Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ.
Key Quotes
"The BOJ monetary policy announcement and the release of the semi-annual report on the outlook for the economy and inflation were the key events from Asia today and while there was no surprise with the monetary policy stance being left unchanged, the forecasts for inflation offered further evidence to the market that it remains confident that it is on track to achieve its inflation target of 2.0%. The annual core CPI forecasts were unchanged in FY14 and FY15 at 1.3% and 1.9% respectively but the first forecast for FY16 provided in today’s report was higher still, at 2.1%. The BOJ is essentially playing down the current flat-lining of the annual core inflation rate, which has remained at 1.3% for the last four months in a row."
"The BOJ today stated that it believes the key inflation rate will be back on a rising trend in the second half of this fiscal year. That assertion is made despite acknowledging in today’s forecasts that the BOJ was too optimistic on growth."
"Real GDP for the current fiscal year was revised down from 1.4% to 1.1% while the FY15 GDP projection was unchanged at 1.5%. Real GDP is then estimated to slow to 1.3% in 2016."
Key Quotes
"The BOJ monetary policy announcement and the release of the semi-annual report on the outlook for the economy and inflation were the key events from Asia today and while there was no surprise with the monetary policy stance being left unchanged, the forecasts for inflation offered further evidence to the market that it remains confident that it is on track to achieve its inflation target of 2.0%. The annual core CPI forecasts were unchanged in FY14 and FY15 at 1.3% and 1.9% respectively but the first forecast for FY16 provided in today’s report was higher still, at 2.1%. The BOJ is essentially playing down the current flat-lining of the annual core inflation rate, which has remained at 1.3% for the last four months in a row."
"The BOJ today stated that it believes the key inflation rate will be back on a rising trend in the second half of this fiscal year. That assertion is made despite acknowledging in today’s forecasts that the BOJ was too optimistic on growth."
"Real GDP for the current fiscal year was revised down from 1.4% to 1.1% while the FY15 GDP projection was unchanged at 1.5%. Real GDP is then estimated to slow to 1.3% in 2016."