BoJ Focus: FXWW

From the FXWW Chatroom: Morgan Stanley MUFG Securities has pushed back expectations for when it expects the BoJ to widen the corridor it allows Japanese yields to operate in. The bank expects the BoJ to adjust its 10-year bond yield target in Q119 (prev. Q318) following the recent Dep. Gov. appointments at the BoJ.
– MSMUFG now expects the BOJ to change the target to “around 0.15%” from the current “around 0%,” interpreting around 0.15% to mean a band from 0%-0.3%.
– MS MUFG forecasts that CPI (core-core, which excludes fresh food and energy) will reach 1% in Q119, as the stronger JPY has pushed back its expectations for attaining 1% core-core CPI.

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