15 Mar 2016
Nothing expected from BoJ, but watch presser - Westpac
Analysts at Westpac explained that there is minimal expectation of a change of policy from the Bank of Japan today.
Key Quotes:
"There is no fixed time as usual, with an announcement potentially any time from 11:30am Tokyo but most decisions released within 12:00-12:30pm Tokyo/2-2:30pm Syd/11-11:30am Sing/HK. Japan’s economic momentum remains sluggish but the recovery in oil prices since the 29 January meeting offers a glimmer of hope that headline CPI will pick up a little sooner than they might have thought at that meeting.
But the main focus is likely to be on the press conference at 3:30pm Tokyo when Governor Kuroda should be keen to stress the scope for deposit rates to become more negative (now -0.1%), after the EUR rally in response to Draghi’s comments last week. Even so, Kuroda will face some awkward questions on why the yen is significantly stronger now than before negative rates were revealed."
Key Quotes:
"There is no fixed time as usual, with an announcement potentially any time from 11:30am Tokyo but most decisions released within 12:00-12:30pm Tokyo/2-2:30pm Syd/11-11:30am Sing/HK. Japan’s economic momentum remains sluggish but the recovery in oil prices since the 29 January meeting offers a glimmer of hope that headline CPI will pick up a little sooner than they might have thought at that meeting.
But the main focus is likely to be on the press conference at 3:30pm Tokyo when Governor Kuroda should be keen to stress the scope for deposit rates to become more negative (now -0.1%), after the EUR rally in response to Draghi’s comments last week. Even so, Kuroda will face some awkward questions on why the yen is significantly stronger now than before negative rates were revealed."