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16 May 2014
Bank of Japan seen unchanged - RBS
(Guatemala) - Strategists at RBS explained that the Bank of Japan policy decision in May is due next week after first quarter GDP outperformed expectations.
Key Quotes:
“But it is unclear if the outperformance was a signal of stronger momentum than anticipated heading into the April consumption tax hike or merely a sign that more activity than expected was pulled forward into the first quarter, portending a larger drag in second quarter GDP growth”.
“The Bank of Japan will not have a national inflation print for April (the first month of the consumption tax hike) until after this week's meeting – that may reduce the likelihood of action by the BoJ next week, though given the somewhat neutral commentary from the BoJ of late the chances of action next week were likely already seen as low”.
Key Quotes:
“But it is unclear if the outperformance was a signal of stronger momentum than anticipated heading into the April consumption tax hike or merely a sign that more activity than expected was pulled forward into the first quarter, portending a larger drag in second quarter GDP growth”.
“The Bank of Japan will not have a national inflation print for April (the first month of the consumption tax hike) until after this week's meeting – that may reduce the likelihood of action by the BoJ next week, though given the somewhat neutral commentary from the BoJ of late the chances of action next week were likely already seen as low”.