Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Bank of Japan’s monetary policy to stay extremely accommodative through fiscal 2017 – Danske Bank

The Bank of Japan’s monetary policy is expected to stay extremely accommodative through fiscal 2017, which would also underpin demand, both domestically and abroad, noted Danske Bank in a research report. The Japanese central bank has promised to hold measures in place until the 2 percent inflation target is reached. Inflation has been accelerating through 2017, but mostly due to rising energy prices.

Underlying price pressure in Japan continues to be very low and the Bank of Japan’s inflation target is at present not within reach. Nearly three decades of very low inflation signify that firms are not willing to hike prices and attempt to cut back on services and streamline their operations instead of raising wages, stated Danske Bank. Lo worker mobility and a preference for job security over wage rises are huge obstacles for wage inflation.

Meanwhile, public spending is also expected to stay supportive for the Japanese economy through the fiscal year 2017.

“We expect to see GDP-growth around 2 percent q/q annualised through the rest of fiscal 2017 and a significant slowdown in fiscal 2018 when stimulus starts to wear off”, added Danske Bank.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Japanese Yen was highly bearish at -133.06, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 110.331. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

November 24 15:30 UTC Released

USECRI Weekly Index*

Actual

145.6 %

Forecast

Previous

145.6 %

November 24 14:45 UTC Released

US1st Half-Mth Infl YY*

Actual

54.6 %

Forecast

Previous

54.6 %

November 27 09:00 UTC 27402740m

ITExport Prices*

Actual

Forecast

Previous

111 %

November 27 09:00 UTC 27402740m

ITImport Prices*

Actual

Forecast

Previous

116.1 %

November 27 14:00 UTC 30403040m

MXTrade Balance, $*

Actual

Forecast

Previous

-1.886 Bln USD

November 27 14:00 UTC 30403040m

MXTrade Balance SA*

Actual

Forecast

Previous

-1.559 Bln USD

November 27 15:30 UTC 31303130m

USDallas Fed mfg bus index

Actual

Forecast

Previous

27.6

November 27 21:00 UTC 34603460m

KRBOK Manufacturing BSI*

Actual

Forecast

Previous

87 Bln BRL

November 28 00:00 UTC 36403640m

BRCentral Govt Balance

Actual

Forecast

Previous

-22.725 Bln BRL

November 28 07:00 UTC 40604060m

DEGDP Growth QQ* Advance

Actual

Forecast

Previous

10.7 %

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.