16 Jun 2015
BoJ drawing major attention - BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch noted that the Bank of Japan (BoJ) will hold its Monetary Policy Committee meeting on 18-19 June.
Key Quotes:
"The BoJ should stay on hold at its MPM on18-19 as it may well remain optimistic and view the yen as weak enough"
"We expect it to maintain the current framework for monetary easing, including the scale of asset purchasing and the maturity of bonds eligible for the program."
"First, the BoJ raised its economic assessment at its previous MPM (21-22 May). As far as we can tell from subsequent data, there is nothing to change the BoJ's optimistic economic assessment to any great degree."
"Second, based on Governor Kuroda's 10 June statement, the BoJ probably thinks the current yen exchange rate is within a range that does not contradict its forecast for an accelerating inflation rate."
"In light of these points, we believe the BoJ will maintain its position of monitoring data to see if the actual inflation rate improves, while maintaining the current pace of asset purchasing."
Key Quotes:
"The BoJ should stay on hold at its MPM on18-19 as it may well remain optimistic and view the yen as weak enough"
"We expect it to maintain the current framework for monetary easing, including the scale of asset purchasing and the maturity of bonds eligible for the program."
"First, the BoJ raised its economic assessment at its previous MPM (21-22 May). As far as we can tell from subsequent data, there is nothing to change the BoJ's optimistic economic assessment to any great degree."
"Second, based on Governor Kuroda's 10 June statement, the BoJ probably thinks the current yen exchange rate is within a range that does not contradict its forecast for an accelerating inflation rate."
"In light of these points, we believe the BoJ will maintain its position of monitoring data to see if the actual inflation rate improves, while maintaining the current pace of asset purchasing."