The Bank of Japan summed up the results of its January session. As expected, Central bank didn’t make any adjustments to the monetary policy and represented its forecasts for 2013-1015 years, and has left economy estimation unchanged.
It is planned, that the expansion of the monetary base will be at the level ¥ 60-70 trillion per year. As the representative of Brown Brothers Harriman Marc Chandler notices, assets’ purchases by the Bank of Japan will exceed the volume of purchases assets by the FED since February. To the expectations of economists of CBA retained estimation of the Japanese economy. Statements on inflation, made last week by H. Kuroda, who heads the Bank of Japan, also allow considering that the Central Bank is satisfied with the results of the policy. Thus, payments of manufacturers and machinery orders allow us to expect further growth in activity.
According to forecasts of the Bank of Japan, the national GDP will grow in the current fiscal year by 2.7%. Nevertheless, the Central Bank is expected to decrease in 2014-2015, the growth (forecast to increase by 1.4%) in the 2015-2016 fiscal year (1.5%). Earlier, the Japanese authorities have reported a slowdown in economic growth expectations for the period of tax reform, which will start in April this year. Probably, the high level of consumer expenditures before the increasing of sales tax rates will provide some support to the economy at the beginning of the reform. Bank of Japan also increased its estimate of growth of major foreign economies.
Inflation forecasts made by economists of the Central Bank got in line with the forecasts of most economists, published by Kyodo. H. Kuroda's recent statement that the Japanese economy is in the process of achieving the inflation target value of 2% in some kind is combined with forecasts of the Central Bank. It is expected that in the next fiscal year which starts in April this year, inflation will be at 1.3 %. It is also expected that in 2015-2016 fiscal year, the inflation rate will rise to 1.9 %. By the end of the current financial year, the Bank of Japan expects inflation at 1.3 %.
As it was expected by the analysts of the Binary Options Broker Optionova (rated among the TOP Binary Option Brokers by Masterforex-V World Academy), the results of the meeting had little effect on the yen. Experts noted that the USDJPY completed a downward wave A/B, presumably level H6. Further decrease of the pair with minimum breakdown 103.85 will show the start of "bear" wave A / B level H16. Likely supports will be the levels of Fibonacci 103.80, 103.60/44, 103.19/14. Breakthrough of maximum 104.91 will show continuation of upward wave A / B level H16. Resistances are the maximums 105.33, 105.43.
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