Flash Comment
Bank of Japan revises growth down and re−mains relaxed about inflation
Wed, Apr 30 2008, 10:43 GMT
by Flemming J. Nielsen
Danske Bank A/S
Bank of Japan (BoJ) as widely expected left its leading interest O/N target rate unchanged at 0.5% in a unani-mous decision. As expected BoJ revised its financial year 2008 (FY 2008) GDP and CPI forecasts significantly down, but remains relaxed about the recent spike in inflation and effectively confirms our suspicion that it has effectively removed its tightening bias in monetary policy. In light of the very weak numbers released overnight the recent weeks sharp increase in bond yields is probably overdone.
Published on
Wed, Apr 30 2008, 10:46 GMT
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