OctaFX | OctaFX Forex Broker
Open trading account
Back

Forex Flash: BOJ plan not significantly more aggressive than Fed’s QE - Nomura

FXstreet.com (Barcelona) - Richard Koo, Chief economist at the Nomura Research Institute notes that the BoJ plan is not significantly more aggressive than the Fed´s QE and using this concept of the statutory reserve deposit multiple, the BOJ’s new policy would lift potential growth in the money supply, and therefore inflation—from 4.8x to 18.7x.

He adds that the latter number is much higher than the corresponding figures of 9.7x for the UK or 3.8x for the eurozone, but is roughly equal to the US multiple of 16.0x and somewhat less than the 21.6x peak there. In that sense, the BOJ’s easing program can be viewed as an attempt to catch up with (and overtake) the Fed on the easing front. He writes, “Estimates based on the quantitative easing schedule provided by the BOJ suggest that Japan’s monetary base (as a multiple of statutory reserves) will overtake the UK sometime this autumn and pass the US next summer.”

Forex: USD/JPY recovers after setting fresh low

The USD/JPY took another step lower and printed a marginal new low for the day as another wave of risk aversion hit the markets at the beginning of the NY session.
Read more Previous

Forex: EUR/SEK keeps highs around 8.4800

The Swedish krona keeps the soft tone vs. the single currency on Wednesday, gyrating around 8.4800 and printing session highs at the same time...
Read more Next
Start livechat