Quotes from RBC Capital Markets: -USD/JPY has been holding above 101.30 overnight (spot 101.55/60). For the fifth month of the last six, the trade balance printed below expectations (JPY-800bn vs. cons: JPY-600bn). BoJ Governor Kuroda spoke and said Japan is steady on track towards its 2% price goal (core CPI likely to hit 2% around early 2015). -He argues temporary factors are behind the weakness in exports (Chinese lunar new year and US cold weather). And he argues the sales tax hike is unlikely to cause a 1997 style recession. -On the topic of additional QE, he said the BoJ would adjust policy if risks lead to a change in forecasts and threaten the price target. Note earlier the BoJs Kuichi said the side-effects of more easing could exceed the effects and that they have room to reconsider the level of the 2% price target, though he originally voted against that target.
Posted on: Wed, 19 Mar 2014 12:34:08 +0000