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19 May 2014
Bank of Japan seen unchanged - RBS
FXStreet (Bali) - The Bank of Japan policy decision in May is due this week , with RBS Strategists Brian Daingerfield and Paul Robson, expecting no changes.
Key Quotes
"After the first quarter GDP outperformed expectations, it is unclear if the outperformance was a signal of stronger momentum than anticipated heading into the April consumption tax hike or merely a sign that more activity than expected was pulled forward into the first quarter, portending a larger drag in second quarter GDP growth."
"The Bank of Japan will not have a national inflation print for April (the first month of the consumption tax hike) until after this week’s meeting – that may reduce the likelihood of action by the BoJ this week, though given the somewhat neutral commentary from the BoJ of late, the chances of action this week were likely already seen as low."
Key Quotes
"After the first quarter GDP outperformed expectations, it is unclear if the outperformance was a signal of stronger momentum than anticipated heading into the April consumption tax hike or merely a sign that more activity than expected was pulled forward into the first quarter, portending a larger drag in second quarter GDP growth."
"The Bank of Japan will not have a national inflation print for April (the first month of the consumption tax hike) until after this week’s meeting – that may reduce the likelihood of action by the BoJ this week, though given the somewhat neutral commentary from the BoJ of late, the chances of action this week were likely already seen as low."