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21 May 2014
BoJ to maintain policy unchanged - RBS
FXStreet (Bali) - The Bank of Japan decision is due shortly, with RBS Strategists expecting an unchanged stance.
Key Quotes
"The fairly neutral comments from the BoJ, paired with a stronger than anticipated growth pace in the first quarter, likely point toward an unchanged stance from the Bank of Japan."
"The Bank does not yet have a national CPI print for April, the first month since the consumption tax hike was put in place."
"That may make action at this week's meeting even less likely. While the stronger than anticipated GDP print for the first quarter was in part driven by a pull-forward in consumption, the underlying make up of growth away from consumption was still fairly positive, including a strong gain in private sector capital investment."
"Our economics team has revised up their growth forecast for Japan to 1.1% y/y for FY 2014 from 0.5%."
Key Quotes
"The fairly neutral comments from the BoJ, paired with a stronger than anticipated growth pace in the first quarter, likely point toward an unchanged stance from the Bank of Japan."
"The Bank does not yet have a national CPI print for April, the first month since the consumption tax hike was put in place."
"That may make action at this week's meeting even less likely. While the stronger than anticipated GDP print for the first quarter was in part driven by a pull-forward in consumption, the underlying make up of growth away from consumption was still fairly positive, including a strong gain in private sector capital investment."
"Our economics team has revised up their growth forecast for Japan to 1.1% y/y for FY 2014 from 0.5%."