9 Apr 2015
BoJ maintains positive view on inflation outlook - Nomura
FXStreet (Bali) - The Bank of Japan maintained a positive view on inflation outlook during his press conference on Wednesday, notes the Research team at Nomura.
Key Quotes
"The Bank of Japan left its policy unchanged today, as widely expected. The Bank lowered its inflation assessment in the statement again, while maintaining an optimistic inflation outlook."
"Governor Kuroda kept his positive stance on the possibility of inflation accelerating this autumn, while suggesting a couple of positive factors for the inflation outlook; 1) mid- to long-term inflation expectations remain resilient, 2) the labour market is tightening and the output gap is at about 0%, 3) the negative impact from the oil price fall will fade, and 4) higher wage negotiations than a year ago will be positive for the inflation outlook."
"Even though Governor Kuroda’s comments suggest a low possibility of a near-term easing, the FX market reaction was relatively muted. Even though the next BOJ meeting on 30 April may be slightly negative for USD/JPY, we judge gradual USD/JPY appreciation is still the most likely scenario this year."
Key Quotes
"The Bank of Japan left its policy unchanged today, as widely expected. The Bank lowered its inflation assessment in the statement again, while maintaining an optimistic inflation outlook."
"Governor Kuroda kept his positive stance on the possibility of inflation accelerating this autumn, while suggesting a couple of positive factors for the inflation outlook; 1) mid- to long-term inflation expectations remain resilient, 2) the labour market is tightening and the output gap is at about 0%, 3) the negative impact from the oil price fall will fade, and 4) higher wage negotiations than a year ago will be positive for the inflation outlook."
"Even though Governor Kuroda’s comments suggest a low possibility of a near-term easing, the FX market reaction was relatively muted. Even though the next BOJ meeting on 30 April may be slightly negative for USD/JPY, we judge gradual USD/JPY appreciation is still the most likely scenario this year."