BoJ Rate Announcement Preview (Jan 2017)
The BoJ is not expected to change policy at the first meeting of 2017. Currently the bank conducts JPY 80trln bond purchases annually, targets the 10-year yield at 0.00% and the short-term policy rate is -0.10%. Conditions have seemed to turn in the BoJ’s favour in recent months, while the JPY is also depreciating which should boost inflation and exports.
Recent data releases support the BoJ's view that the economy is in the midst of a "moderate recovery trend." Manufacturing continued to pick up in December, with the Nikkei PMI improving to a 12-month high. Also, a solid pick-up in December consumer confidence-it rose to the highest in more than three years-suggests consumption remains on track to accelerate in 2017.
That effect has not materialised yet however, the most recent inflation figures showed both headline and underlying inflation weakened in December. This was attributed to the lingering effects of last year’s strengthening of the JPY lowering the price of goods. (Read More)
A Guide to Why the Article 50 Bill Is a Headache for Theresa May
U.K. Prime Minister Theresa May was hoping to bypass Parliament on when and how to trigger divorce proceedings with the European Union. Then the Supreme Court set her straight. So this week lawmakers discuss for the first time a short bill giving her permission to invoke Article 50 of the EU’s Lisbon Treaty.
At stake is whether May will meet her self-imposed deadline for starting talks by March 31 and if she’ll have a free hand to negotiate as she wants.
If Parliament does reject the legislation, it could even resuscitate the specter of early elections. (BBG – Read More)
23:50 JN Industrial Production (Dec, P)
00:30 AU NAB Business Survey (Dec)
——– JN BoJ Decision
06:30 JN BoJ's Kuroda Holds Press Conference Following MonPol Decision
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