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15 Jan 2015
Governor Kuroda’s speech emphasises continued easing – BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ, notes that Governor Kuroda emphasised continued monetary easing at the BOJ branch meeting today, with Bloomberg sharing that BoJ’s inflation forecast might be under review as the speech lacked any view on inflation.
Key Quotes
“The correction lower in USD/JPY looks to have petered out, no doubt helped by some better news on the global economy that helped lift equity markets in Asia today.”
“There is also market speculation that the “Growth-Support Funding Facility” and the “Stimulating Bank Lending Facility” will both be extended by a year beyond the March deadline in place at present. The first has JPY 5.8trn outstanding as of 5th December while the second has JPY 19trn outstanding. Extending these would not be a major surprise given the BOJ’s emphasis on easing at present.”
“Governor Kuroda in the text of a speech at the BOJ branch managers’ meeting in Tokyo today emphasised continued monetary easing. Bloomberg is highlighting the fact that an inflation view was not given in the speech for the first time suggesting the inflation forecast is under review.”
“If crude oil prices hold here through to the summer when the sales tax increase will have fallen out of the annual CPI calculations, there is a decent chance that annual core CPI will turn negative again.”
“Clearly, that is going to complicate Kuroda’s attempts to change the “deflation mindset” of Japanese households. In these circumstances, yen selling through capital outflows from Japan may be slow to materialise.”
Key Quotes
“The correction lower in USD/JPY looks to have petered out, no doubt helped by some better news on the global economy that helped lift equity markets in Asia today.”
“There is also market speculation that the “Growth-Support Funding Facility” and the “Stimulating Bank Lending Facility” will both be extended by a year beyond the March deadline in place at present. The first has JPY 5.8trn outstanding as of 5th December while the second has JPY 19trn outstanding. Extending these would not be a major surprise given the BOJ’s emphasis on easing at present.”
“Governor Kuroda in the text of a speech at the BOJ branch managers’ meeting in Tokyo today emphasised continued monetary easing. Bloomberg is highlighting the fact that an inflation view was not given in the speech for the first time suggesting the inflation forecast is under review.”
“If crude oil prices hold here through to the summer when the sales tax increase will have fallen out of the annual CPI calculations, there is a decent chance that annual core CPI will turn negative again.”
“Clearly, that is going to complicate Kuroda’s attempts to change the “deflation mindset” of Japanese households. In these circumstances, yen selling through capital outflows from Japan may be slow to materialise.”