Weak Yen Gives Breathing Room to Economy, BOJ May Hold: JPM
Source: BFW (Bloomberg First Word)
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Masaaki Kanno (JPMorgan Securities Japan Co Ltd)
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UUID: 7947283
(Bloomberg) -- Positive market reaction to Trump victory and yen’s depreciation past 106 against USD will give some breathing room for the Japanese economy and allow BOJ to hold off further action, Masaaki Kanno, chief economist at JPMorgan, writes in note Thursday.
Alert: HALISTER1- Revises outlook for BOJ, now seen unlikely to ease in 2017 or until Kuroda’s term expires in April 2018; previous call was for BOJ to cut short-term rate and 10-year JGB yield target in 2H 2017
- Maintains GDP forecast; expect above 1.0% growth to sustain in coming quarters
- Improvement of consumer and corporate sentiment increases upside risk to GDP forecast but rise in protectionism could weigh on economy
- Current market environment will be a tail wind for BOJ’s yield curve control policy
- Risk of a fall in JGB yield curve appears to have been mitigated by rise in long-end of U.S. curve
- Rise in U.S. inflation rate and inflation expectation will do a favor for BOJ
Source: BFW (Bloomberg First Word)
People
Masaaki Kanno (JPMorgan Securities Japan Co Ltd)
To de-activate this alert, click here
UUID: 7947283