22 May 2015
BoJ upgrades economic assessment for the first time in two years – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team gives an update regarding the key developments in the Japan markets, noting that the Bank of Japan upgraded its economic assessment with a boost from housing and consumption.
Key Quotes
“Asian equity indices are mixed yet again, with Shanghai Composite and Hang Seng outperforming and Nikkei225 tracking lower marginally as it headed into its break.”
“Bank of Japan decision delivered on speculations of economic assessment revision, leaving investors at odds with expectations for continued steady easing from Tokyo. As rumored following stronger than expected Q1 GDP, the BOJ announced the economy "continued to recover moderately" - a negligible revision from last month's "Economy continued moderate recovery trend".”
“The BOJ supported this upgrade with improved view of Consumption and Investment. On the former, it said "consumption has been resilient as a background of steady improvement in employment and income" vs prior "private consumption resilient as a trend with employment and income situation improving steadily". On the latter, BOJ noted "housing investment bottomed out and shown signs of pick up" vs prior "housing investment started to bottom”."
“Bank of Japan still sees y/y rate of CPI around 0%, but also reiterated inflation expectations are rising from longer-term perspective.”
“BOJ Gov Kuroda will seek to clarify the central bank's stance along with any outlook for future policy implications at 06:30GMT.”
Key Quotes
“Asian equity indices are mixed yet again, with Shanghai Composite and Hang Seng outperforming and Nikkei225 tracking lower marginally as it headed into its break.”
“Bank of Japan decision delivered on speculations of economic assessment revision, leaving investors at odds with expectations for continued steady easing from Tokyo. As rumored following stronger than expected Q1 GDP, the BOJ announced the economy "continued to recover moderately" - a negligible revision from last month's "Economy continued moderate recovery trend".”
“The BOJ supported this upgrade with improved view of Consumption and Investment. On the former, it said "consumption has been resilient as a background of steady improvement in employment and income" vs prior "private consumption resilient as a trend with employment and income situation improving steadily". On the latter, BOJ noted "housing investment bottomed out and shown signs of pick up" vs prior "housing investment started to bottom”."
“Bank of Japan still sees y/y rate of CPI around 0%, but also reiterated inflation expectations are rising from longer-term perspective.”
“BOJ Gov Kuroda will seek to clarify the central bank's stance along with any outlook for future policy implications at 06:30GMT.”