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Must watch capex in face of China, other risks – BOJ's Kuroda

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The Bank of Japan (BOJ) Governor Haruhiko Kuroda is crossing the wires now, speaking the BOJ press conference after the central bank left its policy steady earlier on the day. Apart from his reiteration on Japan’s inflation and growth outlook, the Governor cited a decline in inventory investment as the key reason behind the Q3 GDP contraction. While he made a special note of the recent Paris terror attacks.

    Key Quotes:

    Economy continues to recover moderately although exports and production are affected by slowdown in emerging economies

    Inflation expectations appear to be rising on the whole from long-term perspective although some indicators have recently shown relative weak developments

    Expect industrial production to pick up as inventory adjustment proceeds

    Exports to rise gradually after being flat for time being

    Consumer inflation likely to hit 2 pct around latter half of fiscal 2016 although timing may swing depending on Oil prices

    Q3 GDP contraction largely due to decline in inventory investment

    Bank of Japan will examine both upside, downside risks to economy and prices, and adjust policy as appropriate

    BOJ turned cautious on inflation expectations as break-even inflation rates and other surveys showed weakness

    Need to closely monitor how capex plan will be implemented

    Machinery orders are on gradual improving trend

    Want to monitor if Paris attacks weigh on consumer sentiment

    Terror attacks impact on global econ limited
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