Loading...
Loading...
A preview of the Bank of Japan meeting courtesy of eFX
I'm typing this quick so it is, in fact, a preview ... not long to go now!
from
the April 2016 meeting due to the downward revisions in corporate
inflation expectations. While our baseline call is for end-October, we
also see a risk of preemptive action as early as at this week's BoJ
meeting (Wednesday). increase the annual pace of monetary base expansion to JPY100-110trn from the current JPY80trn, increase JGB purchase to JPY100trn from JPY80trn, extend the average duration of JGB purchases to 9-12y from 7-10y, increase
equity-linked ETF purchase to JPY6trn from JPY3trn, and 5) cut IOER by
5bp to 0.05%. While uncertainty remains as to what the BoJ actually
undertakes when easing further, a decisive action could pose an upside
risk to our USDJPY forecast of 123 at the end-2015. Inaction this week
may temporarily weigh on USDJPY, but market expectations for an action
on October 30 will likely remain live, limiting the downside for the
pair.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in