A report in the Wall Street Journal citing "people familiar with the BOJ's thinking."
The background to the piece are recent comments from Bank of Japan Governor Kuroda
- pointed to the possibility of additional easing, given the global economic uncertainty
and
- Last month the bank promised to take a more thorough look at the economy before its Oct. 30-31 policy meeting.
But, since then:
- concerns about a global falloff have eased somewhat
- Tokyo's Nikkei ... Wednesday ... a high for the year
- yen has stabilized around 108 .... a relatively comfortable level for Japanese exporters.
- In addition, hopes have risen (on Brexit) entering its endgame
- U.S. and China have begun talking again about a trade deal
And so:
- Bank of Japan officials believe they now have some breathing room
- "The bank wouldn't want to waste its bullets" one of them said.
- The people said such assessments could lead the bank to stand pat at next week's meeting if it concludes the Japanese economy is on track and sees momentum toward the BOJ's 2% inflation target.
OK …. the piece made sense right up until sees momentum toward the BOJ's 2% inflation target.
Yeah. No. There is no momentum toward the inflation target.
Apart from that I think the article has it correct - I suspect nothing much again from the BOJ next week.
