BoJ: Do not expect additional easing this year – SocGen

Research Team at Societe Generale, notes that the JPY has appreciated by 18% YTD in trade-weighted terms.

Key Quotes

“The appreciation in the Japanese yen against the currencies of Japan’s major trade partners (US, China) is weighing on exports, while global demand remains sluggish.

The stronger yen and weak economic momentum are slowing the exit from deflation. At its next meeting in September, the BoJ will conduct a comprehensive assessment of its monetary policy. But, our economists do not expect additional easing by the BoJ this year.