Mr Kuroda stays on the sidelines
Monday, September 8, 2014
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On the other hand, there was no change in the Bank of Japan (BoJ) monetary policy. Despite the significant negative impact from the VAT hike to 8%, the BoJ has only slightly lowered its economic assessment, by downgrading housing investment. Overall, the statement suggests that further easing from the BoJ is unlikely in the near term, especially given the recent pickup in wages growth and decline in USD/JPY. In that respect, further strength in USD/JPY will likely rely on USD in the next weeks. As a result, any further rise is likely to be more gradual than
previously, especially given the strong resistance at 105.90.
On the other hand, there was no change in the Bank of Japan (BoJ) monetary policy. Despite the significant negative impact from the VAT hike to 8%, the BoJ has only slightly lowered its economic assessment, by downgrading housing investment. Overall, the statement suggests that further easing from the BoJ is unlikely in the near term, especially given the recent pickup in wages growth and decline in USD/JPY. In that respect, further strength in USD/JPY will likely rely on USD in the next weeks. As a result, any further rise is likely to be more gradual than
previously, especially given the strong resistance at 105.90.
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