Investing.com - Financial Markets Worldwide

Japan: BoJ Could Raise Inflation Target At Next Meeting‏

ByDanske Markets
Published 12/20/2012, 07:18 AM
Updated 05/14/2017, 06:45 AM

Bank of Japan (BoJ) at today's monetary meeting raised the ceiling for its asset purchases by JPY10trn to JPY 76trn. The implication is that the pace of BoJ's asset purchases will accelerate slightly to close to 9% of GDP in H1 13 from about 8% of GDP in Q4 12.

Fed's planned purchases of mortgage and government bonds in 2013 is equivalent to close to 6.5% of GDP. Hence, while the increase in the asset purchases was as the lower end of expectations, the bottom line remains that monetary easing in Japan is already quite aggressive.

BoJ also stated that the inflation target will be discussed at its next meeting in January. It now looks increasingly likely that the inflation target will be raised from 1% to 2% in connection with the issuance of a joint BoJ/government statement after the January meeting.

If the inflation target is not raised in January, we think it will be raised after April when a new governor has been appointed to the board. The implication of a higher inflation target is that BoJ's asset purchases will last longer.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.