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26 Feb 2015
Further monetary easing in Japan likely in October 2015 – Nomura
FXStreet (Barcelona) - Research Analysts at Nomura, expect the BoJ to ease monetary policy further in October 2015, anticipating inflation rate to register a below expectation rebound in the same period.
Key Quotes
“The reason we expect the BOJ to ease monetary policy further this October is that we think this is when the BOJ will realize just how weak the rebound in inflation has been.”
“We expect the core CPI (adjusted for the impact of the consumption tax increase) to rise 0.1% y-y in 2015 Q3, a very modest acceleration from 0.0% in Q2.”
“We think that the BOJ will realize that while inflation expectations and the economy have been going in more or less the direction it expected, the rebound in actual inflation has been weaker than it projected.”
“We think it will begin to fret about inflation momentum remaining so weak with only another six months to go to the end of its timeline for achieving its 2% inflation target (namely, the end of FY15) and will therefore ease monetary policy in conjunction with the publication of its Outlook Report.”
Key Quotes
“The reason we expect the BOJ to ease monetary policy further this October is that we think this is when the BOJ will realize just how weak the rebound in inflation has been.”
“We expect the core CPI (adjusted for the impact of the consumption tax increase) to rise 0.1% y-y in 2015 Q3, a very modest acceleration from 0.0% in Q2.”
“We think that the BOJ will realize that while inflation expectations and the economy have been going in more or less the direction it expected, the rebound in actual inflation has been weaker than it projected.”
“We think it will begin to fret about inflation momentum remaining so weak with only another six months to go to the end of its timeline for achieving its 2% inflation target (namely, the end of FY15) and will therefore ease monetary policy in conjunction with the publication of its Outlook Report.”