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27 May 2015
BoJ's 2% target drifting away in to the distance - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman noted the minutes from the BOJ's April meeting were published overnight.
Key Quotes:
"Officials are still concerned that its 2% inflation target, which it had hoped to achieve the currency fiscal year. It pushed it out to "around the first half of fiscal 2016." There are doubts about even that. There was an attempt by a quarter of the Board to soften the language to "in or around fiscal 2016", but they failed to sway the majority and thus dissented from the official statement."
"Separately, the BOJ indicated that it made an operating profit of JPY1.7 trillion in last fiscal year. That is a 34% increase year-over-year. Its balance sheet stood at JPY324 trillion."
"It put JPY380 aside for provisions against foreign exchange losses and paid another JPY342 in taxes (yes, it pays taxes), leaving it with a net profit of JPY 1 trillion. The BOJ is keeping about 25%, up from 20% in the previous fiscal year and transferred the rest to the national government."
Key Quotes:
"Officials are still concerned that its 2% inflation target, which it had hoped to achieve the currency fiscal year. It pushed it out to "around the first half of fiscal 2016." There are doubts about even that. There was an attempt by a quarter of the Board to soften the language to "in or around fiscal 2016", but they failed to sway the majority and thus dissented from the official statement."
"Separately, the BOJ indicated that it made an operating profit of JPY1.7 trillion in last fiscal year. That is a 34% increase year-over-year. Its balance sheet stood at JPY324 trillion."
"It put JPY380 aside for provisions against foreign exchange losses and paid another JPY342 in taxes (yes, it pays taxes), leaving it with a net profit of JPY 1 trillion. The BOJ is keeping about 25%, up from 20% in the previous fiscal year and transferred the rest to the national government."