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3 Jun 2015
BoJ on course for 2% CPI target? - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking corporation explained conditions surrounding the BoJ QE programme.
Key Quotes:
"Since 31 Oct 2014 the Bank of Japan QE program has been running at an JPY80 trillion annual increase in the monetary base. This equates to $54bn (using USD/JPY 124) per month, a very rapid pace by any standard."
"The BoJ’s CPI target rate (ex-fresh food y/y) slumped to 0.3% in April once the impact of the 2014 sales tax hike dropped out of calculations."
"Nevertheless, the BoJ continues to insist that its current policy settings will help drive CPI to the 2% target “around the first half of fiscal 2016” (AprSep 2016)."
Key Quotes:
"Since 31 Oct 2014 the Bank of Japan QE program has been running at an JPY80 trillion annual increase in the monetary base. This equates to $54bn (using USD/JPY 124) per month, a very rapid pace by any standard."
"The BoJ’s CPI target rate (ex-fresh food y/y) slumped to 0.3% in April once the impact of the 2014 sales tax hike dropped out of calculations."
"Nevertheless, the BoJ continues to insist that its current policy settings will help drive CPI to the 2% target “around the first half of fiscal 2016” (AprSep 2016)."