BOJ considering lowering inflation forecast for FY2015 - Nomura

FXStreet (Bali) - Yujiro Goto, FX Strategist at Nomura, notes that despite the WSJ reported on Tuesday that the BOJ is considering lowering its inflation forecast for FY2015 at the next meeting on 30 April, the Strategist thinks that the BOJ is still likely to leave its policy unchanged.

Key Quotes

"The WSJ reported yesterday that the BOJ is considering lowering its inflation forecast for FY2015 at the next meeting on 30 April."

"Private forecasters have been steadily reducing their inflation forecasts, and a downgrade by the BOJ may not be a surprise."

"Inflation expectations, which the BOJ focuses on, remain resilient and we think the BOJ is still likely to leave its policy unchanged."

"Market expectations for April easing have fallen, but the BOJ meeting next week may still be negative for USD/JPY."