JPY: Easing not in sight at least for now – Rabobank

By FXStreet FXStreet (Delhi) – Jane Foley, Research Analyst at Rabobank, notes that the BoJ Governor Kuroda does not sound like a man desperate to ease policy further and at the sidelines of the weekend’s IMF meetings, Kuroda commented that “if necessary, we can further ease our monetary policy but at this moment the inflation dynamics is as we anticipated. So, at this stage we just continue QE, but if necessary we can adjust”.

Key Quotes

“The door for further easing has clearly been left open, but there is a tangible reluctance to act despite clear market pressure to do so.”

“Recent economic data releases have shown weakness in production, trade, retail sales, vehicle sales, machine orders and inflation data. At the October 30policy meeting, the BoJ is expected to revise lower forecasts for both activity and inflation and many market participants expect the Bank to sooth these announcements with an increase in QE.”

“An increase in the asset purchase programme, however, may not be straightforward. The minutes of the August BoJ policy meeting state that “one member said that the additional effects of QQE had been diminishing and such effects from even the initial scale of QQE had already been …read more

Source:: FX Street