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1 Jul 2014
Tankan to support the BoJ’s positive outlook - RBS
FXStreet (Bali) - RBS expects today's Tankan survey in Japan to continue to support the BoJ’s positive outlook for both the economy and prices.
Key Quotes
"The second quarter Tankan survey in Japan is released, a critical economic indicator for the BoJ. We anticipate the Tankan survey will continue to support the BoJ’s positive outlook for both the economy and prices, which may dampen its impact on the JPY. The Tankan results following the April 1997 consumption tax hike showed an initial dip in the expectations component ahead of an anticipated decline in demand followed by a rebound in expectations."
"It appears corporates generally remain fairly vibrant about activity even accounting for the sales tax, and a similar rebound in expectations is expected in the 2Q14 Tankan survey. A modest decline in the current indexes for both large and small manufacturers is expected (RBSe +15 large manufacturers, +20 large non-manufacturers).Combined with an improvement in expectations, we expect an upward revision to capex plans to support both growth and BoJ expectations."
Key Quotes
"The second quarter Tankan survey in Japan is released, a critical economic indicator for the BoJ. We anticipate the Tankan survey will continue to support the BoJ’s positive outlook for both the economy and prices, which may dampen its impact on the JPY. The Tankan results following the April 1997 consumption tax hike showed an initial dip in the expectations component ahead of an anticipated decline in demand followed by a rebound in expectations."
"It appears corporates generally remain fairly vibrant about activity even accounting for the sales tax, and a similar rebound in expectations is expected in the 2Q14 Tankan survey. A modest decline in the current indexes for both large and small manufacturers is expected (RBSe +15 large manufacturers, +20 large non-manufacturers).Combined with an improvement in expectations, we expect an upward revision to capex plans to support both growth and BoJ expectations."