HALISTER1: BOJ Likely Take Additional Easing in July Rather Than June: NRI

BOJ Likely Take Additional Easing in July Rather Than June: NRI

(Bloomberg) -- BOJ is unlikely to ease at June 15-16 meeting as overall economy is resilient and has not changed much since previous meeting in April, says Tetsuya Inoue, chief researcher at Nomura Research Institute and former BOJ official, in an interview on June 8.
  • BOJ’s July 28-29 meeting is more likely for additional monetary stimulus
  • There are some key events ahead of July meeting including U.K.’s EU referendum, FOMC meeting and Japan’s Upper House election
  • Yen’s level may also be key for BOJ’s action after events
  • If central bank adds stimulus, bank could cut negative rate on excess reserve by 10-to-20 bps and increase amount of ETF purchase
    • It may also be possible to introduce negative rates on loan program in July
  • With delayed sales-tax hike and bold economic steps, expected to include supplementary budget this autumn, BOJ may be required to keep pace with PM Abe’s economic policy by monetary stimulus
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Tetsuya Inoue (Nomura Research Institute Ltd)

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