Thursday, October 8, 2015

BOJ Review: No easing signal but market cautious on surprises – Nomura

FXStreet (Delhi) – Research Team at Nomura, suggest that after BOJ maintained status quo yesterday, the gap between the BOJ's optimistic view and the market’s view still looks wide, given the BOJ surprise last October, market expectations for BOJ easing into 30 October should continue.

Key Quotes

“The statement hardly changed from the previous meeting, even though economic data have been disappointing while inflation expectations have slowed since the previous meeting.”

“Governor Kuroda’s stance during the press conference was also optimistic, even though he acknowledged some weakness in the economy (e.g. exports and production owing to EM economic slowdown, lower breakeven and near-term inflation expectations among corporates).”

“Downside risks to USD/JPY should be limited thanks to expectations for easing.”
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