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3 Apr 2013
Forex Flash: The time has come for the Bank of Japan to deliver - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale believes that the time has come for the BoJ to deliver.
He notes that this is the first formal policy meeting under the new governor and two new deputy governors who will in his view break new ground in terms of policy easing. He writes, “We expect a strengthened commitment to achieving the new 2% inflation target, backed by a large expansion of asset purchases. The possibility of reductions in some policy rates should also not be discounted, though given the level of current rates these would be largely symbolic. In short, we expect the BoJ to break with tradition and embark on a truly “bold” monetary policy as demanded by the new government.”
He notes that this is the first formal policy meeting under the new governor and two new deputy governors who will in his view break new ground in terms of policy easing. He writes, “We expect a strengthened commitment to achieving the new 2% inflation target, backed by a large expansion of asset purchases. The possibility of reductions in some policy rates should also not be discounted, though given the level of current rates these would be largely symbolic. In short, we expect the BoJ to break with tradition and embark on a truly “bold” monetary policy as demanded by the new government.”