Japan: Growth is on an uptrend - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that Japanese growth is on an uptrend even as here’s no inflation to speak of and no reason for the BoJ to hurry to the QE exit, but still, the case for incredibly accommodative monetary policy isn’t what it was.

Key Quotes

“The BoJ’s main concern looking ahead is probably the same as it for every other central bank (bar the Fed, now) – that the merest hint of a change in direction will result in uncontrollable currency strength. It will work hard to manage that risk, and our forecast for USD/JPY looks for it to be at 110 at the end of next year. In other words, we expect the BoJ to keep the yen around these levels, but the possibility of a return to 120-plus seems very remote now.”