Monday, September 14, 2015

BOJ Preview: Stimulus not expected tomorrow - BBH

FXStreet (Delhi) – Research Team at BBH, expects that there is only a slightly greater chance that the BOJ moves in tomorrow’s monetary policy meet and most who expect additional monetary stimulus see it coming next month rather than now.

Key Quotes

“With deflationary forces not convincingly defeated, inflation far from the goal, and economic growth patchy, many think the BOJ has to step up its unorthodox monetary easing.”

“If boosting the monetary base by JPY80 trillion a year is not sufficient, will growing it by JPY90 trillion really do the trick, as member of parliament and an adviser to Abe suggested last week?”

BOJ Governor Kuroda is still sounding relatively upbeat. He seems to be playing down the official core measure of CPI (which excludes fresh food), and seems to be placing more emphasis on the measure that excludes food and energy.”

“After spending the last few months on his controversial political agenda, Abe appears to returning to economic issues, and fiscal support for the economy, which could include a supplemental budget as early as next month. Pending fiscal stimulus also argues against more monetary easing.”
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