Bank of Japan could keep policy ultra-easy well beyond April
Reuters with the info, in brief:Given the recession persistently weak Japanese economic data (Core machinery orders out Monday showed an annual fall, the trade balance moved back into deficit in January despite better exports)inflation was still above the BOJ's 2% target in December but slowingthere seems little reason for the central bank to shift policy. BOJ Governor Kazuo Ueda noted the BOJ will remain data-dependent for now, and may choose to hold off on any policy shifts until after the economy returns to growth. That could mean until the next positive GDP reading; the preliminary Q1 release is due on May 16. This article was written by Eamonn Sheridan at www.forexlive.com.
Reuters with the info, in brief:
Given
- the recession
- persistently weak Japanese economic data (Core machinery orders out Monday showed an annual fall, the trade balance moved back into deficit in January despite better exports)
- inflation was still above the BOJ's 2% target in December but slowing
there seems little reason for the central bank to shift policy. BOJ Governor Kazuo Ueda noted the BOJ will remain data-dependent for now, and may choose to hold off on any policy shifts until after the economy returns to growth. That could mean until the next positive GDP reading; the preliminary Q1 release is due on May 16. This article was written by Eamonn Sheridan at www.forexlive.com.
