14 Mar 2014
Flash: BoJ minutes came in flat - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, noted the BoJ minutes left no room for surprises today.
Key Quotes
"The combination of slowing economic growth in China, a modestly stronger yen, and the ongoing decline in the Nikkei 225 index, which has fallen by around 12% so far in 2014, are all increasing downside risks to both economic growth and inflation in Japan adding further headwinds on top of the significant fiscal tightening in 2014. Demand is being temporarily boosted ahead of the sales tax rise in April which was evident in the latest industrial production report from Japan which revealed a robust monthly increase of 3.8% in January."
"The release overnight of minutes from their 17th-18th February policy meeting did not reveal any clear signal that the BoJ is moving closer to delivering additional monetary easing. Many members viewed the recent expansion of the special loan programmes not as a policy adjustment although it can show a strong intention. The materialisation of weaker than expected growth and inflation may prompt the BoJ to ease monetary policy further later this year providing a fresh catalyst for further yen weakness."
Key Quotes
"The combination of slowing economic growth in China, a modestly stronger yen, and the ongoing decline in the Nikkei 225 index, which has fallen by around 12% so far in 2014, are all increasing downside risks to both economic growth and inflation in Japan adding further headwinds on top of the significant fiscal tightening in 2014. Demand is being temporarily boosted ahead of the sales tax rise in April which was evident in the latest industrial production report from Japan which revealed a robust monthly increase of 3.8% in January."
"The release overnight of minutes from their 17th-18th February policy meeting did not reveal any clear signal that the BoJ is moving closer to delivering additional monetary easing. Many members viewed the recent expansion of the special loan programmes not as a policy adjustment although it can show a strong intention. The materialisation of weaker than expected growth and inflation may prompt the BoJ to ease monetary policy further later this year providing a fresh catalyst for further yen weakness."