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16 Sep 2015
JPY: BOJ monthly report suggests higher inflation - MUFG
FXStreet (Delhi) – Derek Halpenny, European Head of GMR at MUFG, suggests that the BOJ monthly report has revealed that inflation is heading higher but we, among many, have been somewhat sceptical of the BOJ’s optimism over achieving its inflation goal of 2.0% by around the middle of next fiscal year.
Key Quotes
“The BOJ’s economic report, released today, included the July estimate for annual CPI, excluding fresh food and energy, which increased from 0.7% in June to 0.9%, the highest level since February 2014.”
“Governor Kuroda has been arguing for some time that he expected the annual inflation rate to drift toward 1.0% by the end of the year and no doubt Governor Kuroda will point to this measure to back up his belief that this is happening.”
“Of course from an FX perspective, one must argue that the evidence of inflationary pressures in this underlying measure lowers the probability of the BOJ taking any action at the MPC meeting on 30th October.”
Key Quotes
“The BOJ’s economic report, released today, included the July estimate for annual CPI, excluding fresh food and energy, which increased from 0.7% in June to 0.9%, the highest level since February 2014.”
“Governor Kuroda has been arguing for some time that he expected the annual inflation rate to drift toward 1.0% by the end of the year and no doubt Governor Kuroda will point to this measure to back up his belief that this is happening.”
“Of course from an FX perspective, one must argue that the evidence of inflationary pressures in this underlying measure lowers the probability of the BOJ taking any action at the MPC meeting on 30th October.”