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Friday, September 16, 2016

Big Week Ahead - FOMC and BOJ Meets To Set Direction For Monetary Policies

The markets continues to gyrated with to every Fed official speech. We will know Fed decision on 21 Sep morning and the outcome of BOJ meeting in the afternoon. Odds of Fed raising rates dipped to 18% before FOMC meets next week after retail sales disappoint and former US Treasury Secretary declaring that there is no compelling case for Sep rate hike. What the Bank of Japan is going to announce, be it more easing or more tightening, is anybody’s guess. The uncertainty is creating a potentially extremely perilous situation for investors and traders. Since Fed is going to announce first on 21 Sep morning and BOJ later in the afternoon BOJ may take the queue from Fed.after the disastrous response to the Negative Interest rate  policy announced at the end of January, this blog do not believe Kuroda will further expand on this policy

Some of the recent speeches made by Kuroda also signal that  Kuroda would not implement more NIRP, however he might introduce something to replace it. He could favour monetary policy and fiscal policy in terms of the monetisation of infrastructure stimulus.

Let's wait on  the central bankers to set the macro monetary direction before deciding on the next move!

All posts and charts are for educational and illustration purposes only

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