9 Aug 2013
No change in BoJ monetary policy for rest of 2013 - Nomura
FXstreet.com (Barcelona) - Nomura sees no signs that the BOJ will expand easing in the foreseeable future, thus they a wait-and-see stance at least until the end of 2013.
Key Quotes
"First, debate about the growth strategies is likely to gain momentum ahead of the extraordinary meeting of the Diet scheduled for fall 2013. Although the BOJ has already factored the impact of the consumption tax rise into its outlook, it does not appear to have specifically factored in the boost from the growth strategies, and we therefore see scope for the BOJ to revise up its outlook depending on how the debate progresses."
"Second, with the BOJ having set around mid-2015 as the time it expects to reach its price stability target for inflation, we think it is unlikely to immediately lower its outlook and introduce further easing even if the CPI undershoots its expectations."
"Third, when announcing the major easing measures in April, Governor Kuroda said that all necessary measures had been taken to reach the price stability target. We think that discussions within the BOJ will also take a cautious stance on what sort of additional easing measures should be taken and how much scope remains for increasing the financial asset purchasing program."
Key Quotes
"First, debate about the growth strategies is likely to gain momentum ahead of the extraordinary meeting of the Diet scheduled for fall 2013. Although the BOJ has already factored the impact of the consumption tax rise into its outlook, it does not appear to have specifically factored in the boost from the growth strategies, and we therefore see scope for the BOJ to revise up its outlook depending on how the debate progresses."
"Second, with the BOJ having set around mid-2015 as the time it expects to reach its price stability target for inflation, we think it is unlikely to immediately lower its outlook and introduce further easing even if the CPI undershoots its expectations."
"Third, when announcing the major easing measures in April, Governor Kuroda said that all necessary measures had been taken to reach the price stability target. We think that discussions within the BOJ will also take a cautious stance on what sort of additional easing measures should be taken and how much scope remains for increasing the financial asset purchasing program."