7 Oct 2015
BoJ Preview: Monetary policy decision a closer call - BofA
FXStreet (Bali) - According to Masayuki Kichikawa, Japan Economist at Merrill Lynch (Japan), the Bank of Japan is likely to maintain the current pace of monetary easing later today.
Key Quotes
"Reason (1) it is due to revise its economic and inflation forecasts at the subsequent MPM in about three weeks' time (30 October) alongside its Outlook Report; and (2) we do not think current share prices and the yen exchange rate have reached levels that require urgent monetary easing."
"However, the question of whether the BoJ will act to ease in the near future (30 October, or at the subsequent few MPMs) has become a closer call, since financial and currency markets have remained unstable since August, on top of which some economic data are coming in below expectations.
Key Quotes
"Reason (1) it is due to revise its economic and inflation forecasts at the subsequent MPM in about three weeks' time (30 October) alongside its Outlook Report; and (2) we do not think current share prices and the yen exchange rate have reached levels that require urgent monetary easing."
"However, the question of whether the BoJ will act to ease in the near future (30 October, or at the subsequent few MPMs) has become a closer call, since financial and currency markets have remained unstable since August, on top of which some economic data are coming in below expectations.