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13 Mar 2015
BoJ meeting to see no change in policy – BAML
FXStreet (Barcelona) - The Team at BofA-Merrill Lynch, explains that in the next week’s meeting, the Bank of Japan is likely to keep its policy – asset purchases, unchanged, and comment that the prime focus would be BoJ’s view on slowdown in inflation due to falling oil prices.
Key Quotes
“At its 16-17 March policy meeting, the BoJ is likely to maintain its policy framework in terms of the scale of asset purchases and the maturities of the bonds it purchases.”
“Since the last meeting, economic data (eg, January industrial production and machinery orders and the February Consumer Confidence Survey) have improved; the Nikkei Average has rebounded, topping 19,000 at one point; and exchange rates have been relatively stable (yen appreciation versus the euro, depreciation versus the dollar).”
“As such, we think the key issue will be how the BoJ regards the slowdown in core CPI growth in January (by 0.3ppt from the previous month to 0.2% YoY), owing to the decline in oil prices.”
“During his press conference after the previous meeting (17-18 February), BoJ Governor Haruhiko Kuroda indicated the BoJ would basically wait and see as long as a temporary decline in inflation, owing to a pullback in oil prices, does not lead to a decline in inflation expectations.”
“Given inflation expectation remains stable, despite a significant slowdown of core CPI growth, we think the BoJ sees no urgency in considering additional easing at this time.”
Key Quotes
“At its 16-17 March policy meeting, the BoJ is likely to maintain its policy framework in terms of the scale of asset purchases and the maturities of the bonds it purchases.”
“Since the last meeting, economic data (eg, January industrial production and machinery orders and the February Consumer Confidence Survey) have improved; the Nikkei Average has rebounded, topping 19,000 at one point; and exchange rates have been relatively stable (yen appreciation versus the euro, depreciation versus the dollar).”
“As such, we think the key issue will be how the BoJ regards the slowdown in core CPI growth in January (by 0.3ppt from the previous month to 0.2% YoY), owing to the decline in oil prices.”
“During his press conference after the previous meeting (17-18 February), BoJ Governor Haruhiko Kuroda indicated the BoJ would basically wait and see as long as a temporary decline in inflation, owing to a pullback in oil prices, does not lead to a decline in inflation expectations.”
“Given inflation expectation remains stable, despite a significant slowdown of core CPI growth, we think the BoJ sees no urgency in considering additional easing at this time.”