15 Apr 2014
Possible meeting between PM Abe and BoJ Kuroda - Nomura
FXStreet (Bali) - Yujiro Goto, FX Strategist at Nomura, notes that a possible meeting between PM Abe and Governor Kuroda may take place before month-end.
Key Quotes
"Prime Minister Abe is going to see BOJ Governor Kuroda before the next BOJ meeting on 30 April, according to a WSJ article last Friday."
"The possible meeting between PM Abe and Governor Kuroda may mean that government pressure on the Bank is rising, but we do not expect the Bank to ease any time soon."
"In addition, at this moment, the government also judges that the economy can keep its strong momentum beyond the sales tax hike, partly thanks to the fiscal stimulus."
"The BOJ's market communication last week shows the BOJ remains confident about achieving its inflation target, while Japanese equity prices and USDJPY have traded weakly recently."
"Market expectations for BOJ easing could increase again if Prime Minister Abe does indeed meet Governor Kuroda as reported, while expectations declined significantly recently. Renewed expectations for BOJ easing may support USDJPY and Japanese equities in the short term, while the Bank is still unlikely to ease on 30 April, in our view."
Key Quotes
"Prime Minister Abe is going to see BOJ Governor Kuroda before the next BOJ meeting on 30 April, according to a WSJ article last Friday."
"The possible meeting between PM Abe and Governor Kuroda may mean that government pressure on the Bank is rising, but we do not expect the Bank to ease any time soon."
"In addition, at this moment, the government also judges that the economy can keep its strong momentum beyond the sales tax hike, partly thanks to the fiscal stimulus."
"The BOJ's market communication last week shows the BOJ remains confident about achieving its inflation target, while Japanese equity prices and USDJPY have traded weakly recently."
"Market expectations for BOJ easing could increase again if Prime Minister Abe does indeed meet Governor Kuroda as reported, while expectations declined significantly recently. Renewed expectations for BOJ easing may support USDJPY and Japanese equities in the short term, while the Bank is still unlikely to ease on 30 April, in our view."