From a JP Morgan (dated April 3) on the BOJ and the potential for further easing.
Says that policy makers have reduced their calls for more Bank of Japan easing:
- One reason ... is that a weaker yen has been unpopular with consumer and small business, and local elections will be held in two rounds on April 12 and 26
- But when the BoJ releases its next semi-annual report on April 30 it will probably downgrade the inflation outlook, thus justifying another round of easing in Q3
- We are unsure of the precise timing for this move and have significant concerns about the eventual limits to BoJ balance sheet expansion
JPM recommend to "hold USD vs. GBP and JPY"
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USD/JPY in recent hours:
Reminder .... BOJ meeting today and tomorrow - announcement due Wednesday
