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29 Oct 2014
BoJ's Kuroda keeps familiar stance, further QQE Q1 or Q2 2015?
FXStreet (Bali) - Yesterday, we saw BOJ Gov. Kuroda testifying at the Upper House Finance/Budget Committee, with the Central Banker reiterating the same position on both easing policies and the yen, by saying that for now there is “no need to act on further easing” and that “weak yen is good as long as it reflects fundamentals.”
Kuroda's stance should reinforce the view that the BOJ will not change its policy course at this week’s policy meeting, with chances for a move in December also quite slim, according to the latest Bloomberg survey, with only "9% of BOJ watchers expect an easing this week, and 19% now expect BOJ easing by year-end", Nomura reports. That said, the BoJ's inflationary outlook on Friday will still be a critical piece of information that markets will follow closely in order to obtain further clues on the future prospects of QQE.
At present, market consensus on the next Japan's govt/BOJ’s game plan, appears to be for an official announcement on GPIF changes in asset allocation sometime in November, a supplementary budget between January and February, plan to increase wages in late Q1 2015, further accommodative policies (QQE) in late Q1/early Q2, while a decision to implement another increase in sales tax, if history serves as any indication, may drag on well into 2015 despite politicians assured the public that by Dec this year, a decision will be made.
Kuroda's stance should reinforce the view that the BOJ will not change its policy course at this week’s policy meeting, with chances for a move in December also quite slim, according to the latest Bloomberg survey, with only "9% of BOJ watchers expect an easing this week, and 19% now expect BOJ easing by year-end", Nomura reports. That said, the BoJ's inflationary outlook on Friday will still be a critical piece of information that markets will follow closely in order to obtain further clues on the future prospects of QQE.
At present, market consensus on the next Japan's govt/BOJ’s game plan, appears to be for an official announcement on GPIF changes in asset allocation sometime in November, a supplementary budget between January and February, plan to increase wages in late Q1 2015, further accommodative policies (QQE) in late Q1/early Q2, while a decision to implement another increase in sales tax, if history serves as any indication, may drag on well into 2015 despite politicians assured the public that by Dec this year, a decision will be made.