FXStreet (Edinburgh) – Currency Analyst at BTMU Lee Hardman believes there is the possibility that the BoJ could implement further stimulus following the recent poor GDP data.
Key Quotes
“Economic weakness in Q2 is likely to encourage expectations that the Japanese authorities will provide further stimulus to support growth”.
“Etsuro Honda who is a close advisor to Prime Minister Abe has described the slowdown as worse than expected highlighting that the economy remains slow to regain steam”.
“He has suggested implementing a fiscal stimulus package totalling JPY 3.0 trillion funded by extra tax revenue”.
“Downside risks have also increased to the BoJ’s economic growth outlook likely encouraging a rebuilding of expectations for further BoJ easing which could begin to weigh on the yen”.
(Market News Provided by FXstreet)