JPY: BOJ upping the importance of CPI index - MUFG

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Derek Halpenny, European Head of GMR, notes that the BOJ today announced that it would begin to release its favoured measure of CPI on the same day as the government releases the monthly CPI data.

    Key Quotes

    “The annual CPI rate excluding fresh food and energy has been trending higher and currently stands at 1.2%. Up until now the BOJ included the updated level in its monthly report and the fact that it will now release it on the same day as the other CPI data is an obvious attempt by the BOJ to raise the profile of this measure that is more consistent with the BOJ achieving its inflation goal.”

    “It is another sign that the BOJ is reluctant to implement additional monetary easing and wants to counter any potential risk of speculation building. We continue to expect no additional easing by the BOJ and expect the USD/JPY volatility to obviously come from the USD side as the FOMC begins to raise rates.”
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