21 Jan 2015
BOJ lowers inflation and GDP targets – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that BOJ lowered its inflation targets for FY14/15 and FY 15/16 to 0.9% and 1.0% respectively, and revised its GDP target lower to -0.5% for the current year.
Key Quotes
“USD/JPY hit its lows below ¥117.70 in the wake of the BOJ decision, falling by as much as 100pips from session highs and also sending Tokyo stocks down by nearly 1% in spite of an equity rally elsewhere in Asia.”
“As anticipated, the BOJ maintained its key policy stance of ¥80T annual monetary base increase, while also extending its low-rate funding scheme by a year and boosting provision to each institution from ¥1T to ¥2T.”
“Moreover, BOJ maintained its overall economic assessment but upgraded its view on industrial output to state it has bottomed.”
“On inflation, BOJ lowered FY14/15 and FY15/16 projections by 0.3pts and 0.7% respectively to 0.9% and 1.0%; On GDP, BOJ lowered the current year target to -0.5% from +0.5% but raised its forecasts for the next two years.”
“Despite inflation downgrade - primarily attributed to lower oil prices - the BOJ maintained its commitment to achieving its 2% target.”
Key Quotes
“USD/JPY hit its lows below ¥117.70 in the wake of the BOJ decision, falling by as much as 100pips from session highs and also sending Tokyo stocks down by nearly 1% in spite of an equity rally elsewhere in Asia.”
“As anticipated, the BOJ maintained its key policy stance of ¥80T annual monetary base increase, while also extending its low-rate funding scheme by a year and boosting provision to each institution from ¥1T to ¥2T.”
“Moreover, BOJ maintained its overall economic assessment but upgraded its view on industrial output to state it has bottomed.”
“On inflation, BOJ lowered FY14/15 and FY15/16 projections by 0.3pts and 0.7% respectively to 0.9% and 1.0%; On GDP, BOJ lowered the current year target to -0.5% from +0.5% but raised its forecasts for the next two years.”
“Despite inflation downgrade - primarily attributed to lower oil prices - the BOJ maintained its commitment to achieving its 2% target.”