Currency Analyst at BTMU Lee Hardman sees the demand for the Japanese safe haven picking up pace in the longer term.
“The BoJ sounds more cautious adding that risks to both their economic growth and inflation forecasts are skewed to the downside”.
“Developments in the foreign exchange rates and commodity prices were underlined as important downside risks for the inflation outlook”.
“The weakening of price momentum in particular has been flagged as warranting careful attention going forward signalling that the BoJ maintains an easing bias”.
“Overall, the lack of policy action today will reinforce concerns that the BoJ is running out of room to ease policy further. It supports our view that the yen will continue to strengthen in the year ahead beyond the current period of modest weakness in the near-term”.