2 May 2014
BoJ likely to ease further in July – Danske Bank
FXStreet (Edinburgh) - In light of the recent employment figures in the Japanese economy, Chief Analyst at Danske Bank Allan von Mehren sees the BoJ easing its monetary conditions in July.
Key Quotes
“Japanese data overnight showed an unchanged jobless rate at 3.6% in March. Prior to the past two months it has only been this low in one month since 1998 (in 2007)”.
“It clearly shows that the Japanese job market has tightened considerably, which is important for Bank of Japan to get a lift to wage increases and stoke a further rise in inflation”.
“However, as the economy is now slowing and inflation failing to rise further from 1.3%, we believe Bank of Japan will have to ease further in July”.
Key Quotes
“Japanese data overnight showed an unchanged jobless rate at 3.6% in March. Prior to the past two months it has only been this low in one month since 1998 (in 2007)”.
“It clearly shows that the Japanese job market has tightened considerably, which is important for Bank of Japan to get a lift to wage increases and stoke a further rise in inflation”.
“However, as the economy is now slowing and inflation failing to rise further from 1.3%, we believe Bank of Japan will have to ease further in July”.