The BOJ minutes: more easing ahead?
The minutes of the Bank of Japan’s Jan. 21-22 monetary policy meeting showed some concerns over the pace of the Japanese recovery. Central bank Governor Haruhiko Kuroda said today it was too early for a detailed discussion of exiting the QE strategy.
This week the BOJ extended and expanded its lending program which is aimed to provide banking sector with cheaper money and enhance powers of QE transmission mechanism.
Weak GDP, industrial production and trade data released in Japan this week heightened speculation that the nation’s regulator will further ease its monetary policy ahead of the April tax hike. Weak data from the US, on the contrary, will be justified by bad weather. So, there’s a difference in policy of the BOJ and the Fed positive for USD/JPY.