20 Jan 2014
Flash: BoJ on track? - BBH
FXstreet.com (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted the BoJ on track for its 2.0% target.
Key Quotes:
"The BOJ is past the half-way point toward reaching its 2.0% target (core inflation, which excludes fresh food prices). The December report is due out from January 30. The headline rate of 1.5% is just above the Germany's December rate. Starting next month, the BOJ's “QQE” purchases (quantitative and qualitative) will surpass Federal Reserve purchases."
"The sales tax hike from 5% to 8% effective April 1 is the next key economic challenge and the BOJ appears more likely to react than to preempt. The rally in global bonds appear to have helped cap JGB yields that had risen from 60 bp to 75 bp in December and settled just above 66 bp before the weekend."
Key Quotes:
"The BOJ is past the half-way point toward reaching its 2.0% target (core inflation, which excludes fresh food prices). The December report is due out from January 30. The headline rate of 1.5% is just above the Germany's December rate. Starting next month, the BOJ's “QQE” purchases (quantitative and qualitative) will surpass Federal Reserve purchases."
"The sales tax hike from 5% to 8% effective April 1 is the next key economic challenge and the BOJ appears more likely to react than to preempt. The rally in global bonds appear to have helped cap JGB yields that had risen from 60 bp to 75 bp in December and settled just above 66 bp before the weekend."