BOJ projected to leave APP unchanged for now – Capital Economics

By FXstreet.com,  October 24, 2012, 07:26:00 AM EDT

FXstreet.com (Barcelona) - According to Analyst David Rea at Capital Economics, "The main purpose of the Bank of Japan's Policy Board meeting next Tuesday (October 30) is for it to update its forecasts for GDP and inflation." Historically, policy setting has taken a backseat in the second monthly meetings in April and October, however over the last year the publication of new economic forecasts has provided the backdrop, as well as the justification, for simultaneous monetary easing.

"Several analysts think the Bank will ease further at next week's meeting, however we think the Bank will leave its asset purchase program ( APP ) unchanged, for now at least, and shift its attention to improving the economy's growth potential. Doing so would increase the benefits from the already extremely accommodative monetary conditions." Rea notes.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

Referenced Stocks: APP



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