BoJ: No change to monetary policy and no easing – Nomura

By FXStreet FXStreet (Delhi) – Research Team at Nomura, notes that BoJ made no changes in its monetary policy yesterday and no additional easing was announced despite second straight quarter of negative growth.

Key Quotes

“The BOJ’s Policy Board convened on 18–19 November and decided to leave monetary policy unchanged, as was widely expected by the markets. One focus point for this meeting had been on how the BOJ would view the first set of preliminary GDP figures for 2015 Q3 showing a second straight quarter of negative growth. At the press conference, governor Haruhiko Kuroda said that negative growth in Q3 was due primarily to inventory adjustments, and with consumer spending and exports turning upwards, he retained his bullish stance for the economic outlook.”

“No major concerns shown about expected inflation rate: In the BOJ’s monetary policy statement, the Policy Board did not change its economic assessment, but in a comment about inflation expectations, it added that “some indicators have recently shown relatively weak developments.” We think this refers not only to the decline in breakeven inflation (BEI) mentioned during the press conference but also the Cabinet Office’s October Consumer Confidence Survey showing a 5.3ppt m-m decline in the number of respondents expecting prices …read more

Source:: FX Street