The Nikkei in Japan this morning reports on the Bank of Japan meeting that starts today.
(Meeting is a 2-dayer, so we'll get the announcement tomorrow)
- The paper reports that the BOJ may upgrade its economic assessment
- BOJ hasn''t upgraded its outlook in 2 years ... its currently says the Japanese economy continues a "moderate recovery trend."
- The paper cites yesterday's better GDP data and signs of a rebound in consumer spending. The Board will be wary, though, some are of the view that consumer spending recovery still lacks breadth
If the bank does upgrade the assessment it would have implications for monetary policy, it may diminish the likelihood of more monetary stimulus. At least, one couldn't blame the market for thinking that.
Note, the Japanese government has already raised its economic assessment.
- It did so in March, for the first time in eight months
Other positives to note are housing investment and capital expenditures, they have both registered the first quarter-on-quarter improvement in a year.
Monetary policy is likely to remain unchanged at the meeting.
