8 Apr 2015
BoJ preview: Additional monetary easing to come? - BAML
FXStreet (Guatemala) - Analysts at Bank of america MErrill Lynch noted the forthcoming BoJ decision today.
Key Quotes:
"We expect the Bank of Japan (BoJ) to maintain the current monetary policy framework, such as size of asset purchases and tenor of target bonds, at the upcoming Monetary Policy Board meeting on 7-8 April."
"The core CPI (ex fresh foods) growth (core inflation) in February was 2.0% YoY, slowing another 0.2ppt on January, and if the impact of the consumption tax hike is netted out, the first zero inflation since May 2013. However, at the most recent (17-18 March) press conference, BoJ governor Haruhiko Kuroda stated that even if inflation drops to zero or into negative territory due to the temporary effect of the oil price decline, as long as the output gap and other indicators are improving, it would not lead directly to additional monetary easing."
Key Quotes:
"We expect the Bank of Japan (BoJ) to maintain the current monetary policy framework, such as size of asset purchases and tenor of target bonds, at the upcoming Monetary Policy Board meeting on 7-8 April."
"The core CPI (ex fresh foods) growth (core inflation) in February was 2.0% YoY, slowing another 0.2ppt on January, and if the impact of the consumption tax hike is netted out, the first zero inflation since May 2013. However, at the most recent (17-18 March) press conference, BoJ governor Haruhiko Kuroda stated that even if inflation drops to zero or into negative territory due to the temporary effect of the oil price decline, as long as the output gap and other indicators are improving, it would not lead directly to additional monetary easing."