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24 Dec 2013
Flash: BoJ likely to embark on more QE in 2014 - BBH
FXstreet.com (Bali) - According to Marc Chandler, Head of FX at BBH, the BOJ will likely increase QE after the impact of the sales tax hike on April 1.
Key Quotes
"The Bank of Japan continues to buy the equivalent of $75 bln a month of various assets, including JGBs, ETFs, and REITS."
"Japanese Fiscal policy remains accommodative. Over this past weekend, the Japanese government unveiled the budget for the new fiscal year and it includes a 3.5% increase in spending to JPY95.88 trillion (~$920 bln)."
"Formal cabinet approval is likely Tuesday. That said, the government plans to reduce the new bond issuance to JPY41.25 trillion, which is a JPY1.6 trillion less than will be issued in the current fiscal year."
"The higher tax revenues to do corporate profits and the sales tax hike are (optimistically) projected to boost the government's income by 15%."
Key Quotes
"The Bank of Japan continues to buy the equivalent of $75 bln a month of various assets, including JGBs, ETFs, and REITS."
"Japanese Fiscal policy remains accommodative. Over this past weekend, the Japanese government unveiled the budget for the new fiscal year and it includes a 3.5% increase in spending to JPY95.88 trillion (~$920 bln)."
"Formal cabinet approval is likely Tuesday. That said, the government plans to reduce the new bond issuance to JPY41.25 trillion, which is a JPY1.6 trillion less than will be issued in the current fiscal year."
"The higher tax revenues to do corporate profits and the sales tax hike are (optimistically) projected to boost the government's income by 15%."