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18 Mar 2015
BoJ would refrain from easing further in 2015 – Danske Bank
FXStreet (Edinburgh) - Senior Analyst Flemming Nielsen at Danske Bank does not expect the BoJ to announce further easing measures in the current year.
Key Quotes
“We do not expect additional easing from the BoJ but on the other hand the current aggressive pace of expansion in its balance sheet is unlikely to be reduced in 2015”.
“In our view, financial markets probably underestimate the risk that the BoJ will start tapering at some stage in 2016”.
“For the yen, the implication is that fresh easing from the BoJ is unlikely to be a major driver of a weaker JPY for the rest of 2015”.
“However, interest rate hikes in the US and domestic institutional investors rebalancing their portfolios out of domestic bonds are both still arguments for a weaker JPY”.
“In addition, it should be remembered that the BoJ’s QE programme is already extremely aggressive”.
Key Quotes
“We do not expect additional easing from the BoJ but on the other hand the current aggressive pace of expansion in its balance sheet is unlikely to be reduced in 2015”.
“In our view, financial markets probably underestimate the risk that the BoJ will start tapering at some stage in 2016”.
“For the yen, the implication is that fresh easing from the BoJ is unlikely to be a major driver of a weaker JPY for the rest of 2015”.
“However, interest rate hikes in the US and domestic institutional investors rebalancing their portfolios out of domestic bonds are both still arguments for a weaker JPY”.
“In addition, it should be remembered that the BoJ’s QE programme is already extremely aggressive”.