BoJ marks significant disappointment to many in the market – Deutsche Bank

Research Team at Deutsche Bank, notes that the BoJ announced that following the latest Board meeting it had decided to leave monetary policy settings unchanged – in line with the view of our economists but a significant disappointment to many in the market.

Key Quotes

“The Bank’s outlook statement argues that the economy has continued a ‘moderate recovery trend’ and that this trend is likely to continue. The Bank sees core CPI inflation remaining near zero in the near term but rising to 2% in FY2017.

Meanwhile the Yen has leapt almost 2% against the USD to just over 109. Clearly little comfort was provided by the Bank’s comment that it would take further easing measures if judged necessary to hit the inflation target.”