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26 Jan 2015
BOJ Governor Kuroda plays down lack of options – BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ, mentions that BOJ Kuroda’s in an interview to Bloomberg refused to accept that the easing by numerous central banks was hindering their efforts to life inflation in Japan, further adding it would be difficult to erase the ‘deflation mindset’ prevailing in Japan.
Key Quotes
“BOJ Governor Kuroda on Friday in a Bloomberg TV interview played down the wave of monetary easing that is evident globally, refusing to accept that it was complicating efforts to lift inflation in Japan.”
“The efforts of the BOJ to weaken the yen may well be thwarted by the fact that numerous central banks globally are either easing of shifting toward an easier stance in recent weeks. If the yen was to strengthen from here with oil much lower, the “deflation mindset” in Japan may be difficult to shift. We certainly see USD/JPY as vulnerable.”
“This week it might be the turn of the FOMC to signal a delay in the timing of the first rate increase when it releases its statement after the meeting on Wednesday. That would follow ECB and Bank of Canada easing plus a shift in stance from the BOE. The BOJ is no longer standing out as much from the crowd and that will limit yen selling appetite.”
Key Quotes
“BOJ Governor Kuroda on Friday in a Bloomberg TV interview played down the wave of monetary easing that is evident globally, refusing to accept that it was complicating efforts to lift inflation in Japan.”
“The efforts of the BOJ to weaken the yen may well be thwarted by the fact that numerous central banks globally are either easing of shifting toward an easier stance in recent weeks. If the yen was to strengthen from here with oil much lower, the “deflation mindset” in Japan may be difficult to shift. We certainly see USD/JPY as vulnerable.”
“This week it might be the turn of the FOMC to signal a delay in the timing of the first rate increase when it releases its statement after the meeting on Wednesday. That would follow ECB and Bank of Canada easing plus a shift in stance from the BOE. The BOJ is no longer standing out as much from the crowd and that will limit yen selling appetite.”