Further easing by the BOJ ? Weaker Yen here to stay.

Further monetary easing is absolutely essential to ensure that the Japanese don’t slip back to a deflationary mindset , Bank of Japan must ease monetary policy further at its rate review on April 30 given signs of slowdown in the economy and prices .

Since October BOJ hasn’t taken any further action and have signalled that no further stimulus is needed for now, insisting that rising wages and improvements in the economy will accelerate inflation toward its 2 percent target around this fiscal year ending March 2016 but looking one year ahead this is very unlikely as the lower oil price has taken away any inflation the QE has created .

As I type this there is very little Analyst believing there will be any action in April .

BOJ has many tools it create stimulus , such as topping up purchases of government bonds, corporate bonds and trust funds investing in property, as well as diversifying the type of assets it targets,

If not in April then this is on the cards , not if but when .

Tony Evans

Tokyo Japan ,

 


Related = JP Morgan View

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