All Eyes on Japan Ahead of the Bank of Japan’s Policy Meeting Concludes 28th April 2016
04/28/2016

Later today the Bank of Japan will release the notes from its latest 2-day policy meeting.

Online PR News – 28-April-2016 – Toronto, Ontario – Baumann Group

All Eyes on Japan Ahead of the Bank of Japan’s Policy Meeting Concludes 28th April 2016

Later today the Bank of Japan will release the notes from its latest 2-day policy meeting. No real policy changes are expected yet data released this morning on Core Consumer Prices may have some impact on the Banks report.

Today key data on Core Consumer Prices in Japan came in well below analysts’ expectations. Expected to have grown by just 0.2% over the same period last year, the actual figure was -0.3%, significantly lower and a sign that the policy easing implemented in January has not yet had a chance to have any positive effect.

The negative inflation policy which started at the beginning of the year was seen as the first step in another long run of “Abenomics” designed to battle Japan’s deflation problems. The Bank of Japan has been very active in looking to turnaround the economy, yet the measures it has implemented have not had the desired effect and many believe that with the strength of the USD the Japanese economy will struggle to get where they want to be.

Japanese markets have had a string of negative news that has had an adverse effect on its value. Most recently the automotive sector, specifically Mitsubishi saw huge losses, to the tune of over $25bn when the news broke that they had been misleading their customers about the fuel economy of their vehicles for years. The Nikkei did manage to recover earlier this week but it is still very susceptible to volatility.

Nikkei 225 Close 27th April:
Nikkei 225 – 17,290.49 down 62.99 (-0.36%)

The BoJ is expected to report just after lunch and should give the markets some opportunity to recover before the week closes.

The USD/YEN came close to 3 week highs this morning, touching 111.53 in early trading.

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