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17 Sep 2015
ECB and BOJ: On the verge of further easing – Nomura
FXStreet (Delhi) – Research Team at Nomura, suggests that there are rising expectations of further easing from the ECB and possibly the BOJ, which is also clearly indicated by the recent survey conducted by the research house itself.
Key Quotes
“ECB: 74% of clients expect some form of future ECB easing this cycle, with December 2015 voted as the most likely time. QE extension beyond Sep 2016 had the highest response, while just fewer than 50% expected the monthly pace of purchases to be increased.”
“We expect the ECB will announce in March 2016 an extension of QE from September 2016 to March 2017; however, we acknowledge risks of an earlier.”
“BOJ: 66% of clients expect the BOJ to announce further easing by April 2016, with a slight plurality favouring earlier, in December 2015. 72% expect additional easing to come in the form of an increase in the annual purchase target from JPY80trn and 46% expect the BOJ to move purchases further out the yield curve.”
“We expect the BOJ to undertake additional easing slightly later than participants in April 2016. However, if downside risks to the Japanese economy increase, we think it likely this easing could be introduced earlier.”
Key Quotes
“ECB: 74% of clients expect some form of future ECB easing this cycle, with December 2015 voted as the most likely time. QE extension beyond Sep 2016 had the highest response, while just fewer than 50% expected the monthly pace of purchases to be increased.”
“We expect the ECB will announce in March 2016 an extension of QE from September 2016 to March 2017; however, we acknowledge risks of an earlier.”
“BOJ: 66% of clients expect the BOJ to announce further easing by April 2016, with a slight plurality favouring earlier, in December 2015. 72% expect additional easing to come in the form of an increase in the annual purchase target from JPY80trn and 46% expect the BOJ to move purchases further out the yield curve.”
“We expect the BOJ to undertake additional easing slightly later than participants in April 2016. However, if downside risks to the Japanese economy increase, we think it likely this easing could be introduced earlier.”