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17 Mar 2015
Yen remains pressured – FXStreet
FXStreet (Barcelona) - With fiscal and monetary policies failing to pump up investment in Japan, oil continuing its slump, FXStreet Editor and Analyst, Dhwani Mehta, explains that the Yen will remain under pressure.
Key Quotes
“Japan's economy grew at an annualised 1.5% in the final quarter of 2014, missing expectations of 2.2%. On a quarter-on-quarter basis, the economy grew by 0.4% in December Q4 2014.”
“Although, consumer spending in the October-December quarter was revised upwards, weaker than expected capital expenditure data suggests that the fiscal and monetary policies have so far been unsuccessful to stimulate higher level of investment in the country. Capital expenditure fell 0.1% as compared to expectations of an expansion of 0.3%.”
“Moreover, falling oil prices continues to put the central bank under additional pressure. The Bank of Japan Deputy Governor, Hiroshi said that the BOJ must ease monetary policy further if cheap oil prices weaken its efforts to boost inflation expectations.”
“BOJ Nakaso noted, "Oil price falls may push down prices in the short-term but will accelerate inflation in the somewhat long-term perspective because they benefit an oil-importing economy like Japan", “We will adjust monetary policy if the price trend changes and if further action is warranted to achieve our 2 percent inflation target at an early date".”
Key Quotes
“Japan's economy grew at an annualised 1.5% in the final quarter of 2014, missing expectations of 2.2%. On a quarter-on-quarter basis, the economy grew by 0.4% in December Q4 2014.”
“Although, consumer spending in the October-December quarter was revised upwards, weaker than expected capital expenditure data suggests that the fiscal and monetary policies have so far been unsuccessful to stimulate higher level of investment in the country. Capital expenditure fell 0.1% as compared to expectations of an expansion of 0.3%.”
“Moreover, falling oil prices continues to put the central bank under additional pressure. The Bank of Japan Deputy Governor, Hiroshi said that the BOJ must ease monetary policy further if cheap oil prices weaken its efforts to boost inflation expectations.”
“BOJ Nakaso noted, "Oil price falls may push down prices in the short-term but will accelerate inflation in the somewhat long-term perspective because they benefit an oil-importing economy like Japan", “We will adjust monetary policy if the price trend changes and if further action is warranted to achieve our 2 percent inflation target at an early date".”