EWJV - Markets Disappointed With Bank of Japan As Yen Hits New Lows
2024-04-27 22:31:00 ET
Summary
- The Bank of Japan left its key interest rates unchanged today.
- Markets are clearly disappointed with the colourless policy guidance, but we believe the latest outlook report and Governor Ueda’s comments support our view that the BoJ will deliver a 15bp hike in July, followed by a 25bp hike in October.
- Tokyo inflation fell below the BoJ’s target of 2% in April, but this month’s sharp decline was mainly driven by education prices, which dropped -8.8% YoY in April from 1.9% in March.
By Min Joo Kang , Senior Economist, South Korea and Japan
Quite the dramatic change to the monetary policy statement
The Bank of Japan's statement was much shorter than those previously. It consisted of just three sentences, so it didn't provide much information about future guidance or policy preferences. This may be because the quarterly outlook report was published at the same time, and the outlook often gives much more detailed information about the BoJ’s view on the economy. It could also be the BoJ's intention not to give out too much information, as the Bank would like to take a 'wait-and-see' approach after the big decision in March....
Markets Disappointed With Bank of Japan As Yen Hits New Lows