17 Mar 2015
BoJ’s inflation target could be well within reach – Danske
FXStreet (Barcelona) - Reviewing today’s BoJ policy meeting, Senior Analyst at Danske Bank, Flemming J. Nielsen, comments that the central bank might be starting to signal more flexibility in the timing to reach its 2% inflation target, and further forecasts that the target might be reached in early 2016.
Key Quotes
“In our view, the BoJ is also starting to signal more flexibility in the time frame for reaching the 2% inflation target.”
“So far the message from the BoJ has been the inflation target “should be reached at the earliest possible time within a two year framework.” The “two year frame work” has been interpreted as a “deadline” for reaching the inflation target before the end of fiscal year 2015 (ending in March 2016).”
“BoJ governor Kuroda in his recent speeches and today’s press conference omitted the two-year frame work in this sentence.”
“Speeches from other BoJ board members have also indicated more flexibility in the time frame for reaching the target.”
“Our current forecast suggest that the 2% inflation target could be within reach in early 2016, but it depends crucially on oil prices.”
Key Quotes
“In our view, the BoJ is also starting to signal more flexibility in the time frame for reaching the 2% inflation target.”
“So far the message from the BoJ has been the inflation target “should be reached at the earliest possible time within a two year framework.” The “two year frame work” has been interpreted as a “deadline” for reaching the inflation target before the end of fiscal year 2015 (ending in March 2016).”
“BoJ governor Kuroda in his recent speeches and today’s press conference omitted the two-year frame work in this sentence.”
“Speeches from other BoJ board members have also indicated more flexibility in the time frame for reaching the target.”
“Our current forecast suggest that the 2% inflation target could be within reach in early 2016, but it depends crucially on oil prices.”