BoJ: Markets closely listening to Kuroda speech on August 23 - BBH

Research Team at BBH, suggests that the market remains uncertain what the BOJ will do next month, and will be closely listening to Kuroda when he speaks on August 23. 

Key Quotes

“Data overall have come in on the weak side recently, feeding market expectations that greater pressure will be on the BOJ for further easing.  If it does not ease more, then dollar/yen will likely move further below 100. 

At the end of the week, Japan will report July inflation figures.  No progress is expected with the national headline and core (excluding fresh food) expected to remain at minus 0.4%.  Excluding food and energy, the inflation rate is anticipated to edge down to 0.4% from 0.5% to match its lowest level since May 2015, which itself is the lowest since October 2013.  Ahead of the CPI data, Japan’s cabinet releases its monthly economic report for August around mid-week.”