14 Jul 2015
BOJ likely to stay on hold, may trim growth forecasts – BAML
FXStreet (Mumbai) - Research Team at BAML believe that Bank of Japan (BOJ) will hold its Monetary Policy steady on Wednesday amid unstable global financial conditions.
Key Quotes:
“The BOJ will hold a Monetary Policy Board meeting on 14-15 July. We expect it to adhere to its current monetary policy framework, including the amounts and residual maturities of its bond purchases.”
“We believe it is unlikely to significantly change the optimistic economic and inflation forecasts in the Outlook report released in April.”
“We estimate the BOJ might slightly upgrade its outlook for domestic demand and slightly raise warning on downside risks to external demand.”
“The BOJ might trim its growth forecast to account for a weaker export trend, but we do not expect any significant change in the overall picture of its forecast that Japan's economy would achieve above-potential growth this year.”
“With regard to inflation, exchange rates are roughly flat and oil prices have fallen back somewhat relative to 30 April, when the Outlook report was released.”
Key Quotes:
“The BOJ will hold a Monetary Policy Board meeting on 14-15 July. We expect it to adhere to its current monetary policy framework, including the amounts and residual maturities of its bond purchases.”
“We believe it is unlikely to significantly change the optimistic economic and inflation forecasts in the Outlook report released in April.”
“We estimate the BOJ might slightly upgrade its outlook for domestic demand and slightly raise warning on downside risks to external demand.”
“The BOJ might trim its growth forecast to account for a weaker export trend, but we do not expect any significant change in the overall picture of its forecast that Japan's economy would achieve above-potential growth this year.”
“With regard to inflation, exchange rates are roughly flat and oil prices have fallen back somewhat relative to 30 April, when the Outlook report was released.”