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12 Mar 2014
Flash: BoJ Kuroda hints no further easing any time soon - Nomura
FXStreet (Bali) - Governor Kuroda offer edno hint of additional monetary easing any time soon, notes Shuichi Obata and Tomo Kinoshita, Economists at Nomura.
Key Quotes
"Based on currently available press conference notes, BOJ Governor Haruhiko Kuroda attributed the downward revision to the export outlook to structural factors such as the offshoring of production (a process that has nevertheless been subject to difficulties in ASEAN nations and other emerging economies) and to one-time factors such as the cold snap in the US and the Lunar New Year celebrations in East Asia."
"However, he added that there had been no decline in the export competitiveness of the Japanese manufacturing sector and that downside risks to the global economy had diminished, on which basis he expected exports to rise modestly as one-time negatives disappeared."
"He also said that he saw no need at present for policy adjustments, thereby generally providing no support for the view prevailing in certain sections of the market that the BOJ will engage in additional monetary easing in April."
"He also said that the consumption tax hike would push up CPI by 1.7ppt in April and by 2.0ppt from May. Although it will be difficult to assess these figures until CPI statistics are actually published, they nevertheless serve as some kind of yardstick in gauging inflation minus the impact of the consumption tax hike. Following the press conference, we still think that the BOJ will engage in additional monetary easing in July."
Key Quotes
"Based on currently available press conference notes, BOJ Governor Haruhiko Kuroda attributed the downward revision to the export outlook to structural factors such as the offshoring of production (a process that has nevertheless been subject to difficulties in ASEAN nations and other emerging economies) and to one-time factors such as the cold snap in the US and the Lunar New Year celebrations in East Asia."
"However, he added that there had been no decline in the export competitiveness of the Japanese manufacturing sector and that downside risks to the global economy had diminished, on which basis he expected exports to rise modestly as one-time negatives disappeared."
"He also said that he saw no need at present for policy adjustments, thereby generally providing no support for the view prevailing in certain sections of the market that the BOJ will engage in additional monetary easing in April."
"He also said that the consumption tax hike would push up CPI by 1.7ppt in April and by 2.0ppt from May. Although it will be difficult to assess these figures until CPI statistics are actually published, they nevertheless serve as some kind of yardstick in gauging inflation minus the impact of the consumption tax hike. Following the press conference, we still think that the BOJ will engage in additional monetary easing in July."