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BoJ: further easing imminent? – Danske Bank

FXStreet (Edinburgh) - Jens Pedersen, Senior Analyst at Danske Bank, sees the increasing possibility of further easing by the BoJ in light of the recent JPY appreciation.

Key Quotes

“There is no doubt that pressure on the major central banks is mounting as inflation expectations are falling and as further escalation in market jitters increases the risk of credit events”.

“With USD/JPY below 115 we are now in ‘easing territory’ and we would expect the Bank of Japan to combat further significant JPY appreciation”.

“First line of defence would normally be verbal interventions but there has been unusual silence from the BoJ this time. Could be that easing actions are imminent”.
Jens Pedersen, Senior Analyst at Danske Bank, sees the increasing possibility of further easing by the BoJ in light of the recent JPY appreciation.

Key Quotes

“There is no doubt that pressure on the major central banks is mounting as inflation expectations are falling and as further escalation in market jitters increases the risk of credit events”.

“With USD/JPY below 115 we are now in ‘easing territory’ and we would expect the Bank of Japan to combat further significant JPY appreciation”.

“First line of defence would normally be verbal interventions but there has been unusual silence from the BoJ this time. Could be that easing actions are imminent”.

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