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1 Jul 2015
Japan: Inflation expectations among bond investors slowed further – Nomura
FXStreet (Barcelona) - According to the Nikkei Quick survey, Inflation expectations among bond investors in Japan inched down further in June, notes Yujiro Goto, Research Analyst at Nomura, and further expects the BoJ to maintain a dovish stance.
Key Quotes
“Even though core CPI inflation slightly recovered in May, near-term inflation expectations continued to decline, after peaking last summer. 1yr inflation expectations declined to 0.71% from 0.77%, the lowest since August 2013, while 2yr inflation expectations slowed to 1.07% from 1.01%. Longer-term inflation expectations, 10yr inflation expectations also inched down to 1.24% from 1.29%.”
“Inflation expectations among households also declined in May, according to the Cabinet Office Survey.”
“Even though we do not expect the BOJ to ease anytime soon, the slowdown in inflation expectations, on top of weaker-than-expected May nominal wage data, should keep the BOJ’s stance dovish for now.“
Key Quotes
“Even though core CPI inflation slightly recovered in May, near-term inflation expectations continued to decline, after peaking last summer. 1yr inflation expectations declined to 0.71% from 0.77%, the lowest since August 2013, while 2yr inflation expectations slowed to 1.07% from 1.01%. Longer-term inflation expectations, 10yr inflation expectations also inched down to 1.24% from 1.29%.”
“Inflation expectations among households also declined in May, according to the Cabinet Office Survey.”
“Even though we do not expect the BOJ to ease anytime soon, the slowdown in inflation expectations, on top of weaker-than-expected May nominal wage data, should keep the BOJ’s stance dovish for now.“