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BoJ to leave policy unchanged at next week’s meeting – Nomura

FXStreet (Barcelona) - Research Analysts at Nomura, predict that in its next week’s meeting, the BoJ might keep policy unchanged citing an improvement in the underlying price trend.

Key Quotes

“We expect the BOJ to leave monetary policy unchanged at next week’s meeting.”

“The February core CPI (excluding the impact of the consumption tax hike) was flat at 0.0% y-o-y, which represented a slowdown from the 0.2% increase in January. However, as the BOJ has indicated that it expects inflation to be around 0% for the time being, the recent slowdown in inflation is thus within its expected range. In addition, inflation expectations have stabilised.”

“Attention had been focused on the possibility of a sharp fall in inflation expectations, reflecting actual price data, but the BOJ's Tankan and Opinion Survey on the General Public's Views and Behavior have ruled out this possibility.”

“We expect the BOJ to maintain its stance that the underlying trend in prices is improving.”

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