9 Apr 2014
So, that’s a ‘no’ from Japan and China... - Rabobank
FXStreet (Guatemala) - Strategists at Rabobank explained that yesterday’s BoJ policy decision was not to increase QE and Governor Kuroda was upbeat in his comments.
Key Quotes:
“We still think that optimism will be reversed in time given the latest data and the weakness of the Nikkei year-to-date, but it would perhaps have looked like defeatism to step up QE literally days after introducing a long pushed-for higher sales tax”.
“Meanwhile, China sent the same message in terms of hopes for a government-led boost to growth, Xinhua stating bluntly that “any talk about an incoming stimulus package is misleading and those anticipating the kind of stimulus China unleashed following the 2008 global financial crisis are likely to be disappointed”.
Yes, China’s railway investment plan has been boosted - but only by CNY20bn, hardly a game changer. For markets that have become accustomed to central bank largesse, yesterday was perhaps an unpleasant surprise”.
Key Quotes:
“We still think that optimism will be reversed in time given the latest data and the weakness of the Nikkei year-to-date, but it would perhaps have looked like defeatism to step up QE literally days after introducing a long pushed-for higher sales tax”.
“Meanwhile, China sent the same message in terms of hopes for a government-led boost to growth, Xinhua stating bluntly that “any talk about an incoming stimulus package is misleading and those anticipating the kind of stimulus China unleashed following the 2008 global financial crisis are likely to be disappointed”.
Yes, China’s railway investment plan has been boosted - but only by CNY20bn, hardly a game changer. For markets that have become accustomed to central bank largesse, yesterday was perhaps an unpleasant surprise”.