FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, notes that the BoJ left monetary policy unchanged again as expected at today’s meeting and the main development of note was the new wording regarding price expectations displaying greater concern over recent weak developments. Key Quotes “In the accompanying policy statement the BoJ left its assessment of Japan’s economy unchanged as well describing it as continuing to recover modestly despite the second consecutive quarter of economic contraction in Q3.” “In the press conference Governor Kuroda stated that he was reassured by firm consumption and growing exports in Q3. There is scope for disappointment for the outlook for exports. The latest trade report released overnight from Japan revealed that the annual rate of export growth declined by -2.1% in October moving into negative territory for the first time since August of last year.” “The BoJ still sees inflation expectations as appearing to be rising on the whole from a longer-term perspective but added that “some indicators have recently shown relatively weak developments”. The weaker than expected rise in capital investment is another area of concern. The BoJ still expects capital investment to increase even if it is a bit delayed.” “Governor Kuroda also emphasized that the spring 2016 wage talks will be very important citing some concern that weak current inflation may dampen wage growth. Overall the comments represent a dovish shift from the BoJ inching it closer to further easing which could weigh on the yen, although further easing does still not yet appear imminent.” For more information, read our latest forex news.