BoJ: remains a laggard and that's yen negative - Rabobank

Analysts at Rabobank noted that the BoJ has resolutely opted to keep rolling out its huge QQE programme. 

Key Quotes:

"The only surprise of today’s policy meeting was that new board member Kataoka dissented in favour of more easing.  His argument, which echoes that of market economists, is that there is little chance of the BoJ reaching its inflation target by the projected time frame of around fiscal 2019."

"Despite Japan’s strong economic performance this year, the virtual absence of wage inflation and the stubbornly low levels of price pressures will ensure that the BoJ will remain a laggard in terms of monetary policy normalisation."

"In theory this should disadvantage the yen.  However, the performance of USD/JPY this year has be guided by the carry trade on one side and safe haven demand on the other.  This week’s rebuilding of risk appetite and yesterday’s hawkish Fed has pushed USD/JPY to its best levels since mid-July."