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29 Jan 2016
BoJ: Takes the market off-guard - TDS
FXStreet (Delhi) – Research Team at TDS, suggests that the BoJ surprised the market by taking the interest rate on excess reserves into negative territory.
Key Quotes
“Not one analyst in Bloomberg’s poll had forecast such a move and BoJ’s Kuroda ruled out such a move recently, so the decision of 5-4 in favour of negative rates must have been hotly debated. That said ’The BoJ will cut the interest rate further into negative territory if judged as necessary”.
Otherwise the Bank kept monetary expansion at ¥80 trillion, but the Bank did push out its forecast for achieving its 2% inflation target by six months, with its core inflation forecast fore the next year beginning April cut to 0.8% from 1.4% projected 3 months ago.”
Key Quotes
“Not one analyst in Bloomberg’s poll had forecast such a move and BoJ’s Kuroda ruled out such a move recently, so the decision of 5-4 in favour of negative rates must have been hotly debated. That said ’The BoJ will cut the interest rate further into negative territory if judged as necessary”.
Otherwise the Bank kept monetary expansion at ¥80 trillion, but the Bank did push out its forecast for achieving its 2% inflation target by six months, with its core inflation forecast fore the next year beginning April cut to 0.8% from 1.4% projected 3 months ago.”