BoJ expected to step up easing – BBH

FXStreet (Barcelona) - With Japan seeing a disappointing Tankan Survey and capex plans, the Brown Brothers Harriman Team comments that expectations are strong for BoJ to step up its efforts.

Key Quotes

“Japan's Tankan Survey was disappointing. It follows last week's news that inflation had fallen to zero.”

“The recovery from last April's sales tax increase continues to be lackluster. There was no improvement in sentiment among large manufacturers (12), which was slightly weaker than expected, and the expectations for June stand at 10.”

“The non-manufacturers saw modest improvement, but the June projection is for some slippage.”

“Also disappointing was the all industry capex plans. Japanese companies project cutting capex by 1.2% this fiscal year that begins today. The consensus expected a 0.5% increase.”

“Japanese officials, however, are sounding more like cheerleaders, looking past the disappointing data. Nevertheless, many are still expecting the BOJ to step up its efforts.”