Kuroda says loosening policy is possible - Westpac
|Analysts at Westpac noted that Bank of Japan governor Kuroda was also at Jackson Hole.
Key Quotes:
"Bank of Japan governor Kuroda was also at Jackson Hole.and made clear that further loosening of policy was possible, with “ample space for additional easing”. USD/JPY jumped from a low of 100.06 to 101.85 in NY and just above 102.00 early Monday.
Data had no real impact, with the focus on the Fed. US Q2 GDP was confirmed at a 1.1% annualised pace in Q2, as expected, from the 1.2% previous estimate. This was driven by weaker net exports and inventories, while personal consumption was strong.
Event risk: The Asia-Pacific calendar is low key. It is a bank holiday in London. In the US we see personal income and spending for July. Both should see robust gains circa 0.4% in July. However, inflation pressures remain muted, with core prices expected to rise only 0.1% m/m, 1.5% y/y. This is the Fed’s preferred inflation measure, rather than CPI."
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