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Message: [QUOTE="Vistabrokers, post: 80579, member: 32993"] [B]Vista Brokers: Weak Statistics Boost Expectations of BOE New Stimulus[/B] [IMG]http://s018.radikal.ru/i527/1503/29/bb1443ec63c7.jpg[/IMG] In the night from Wednesday to Thursday Japan has published a portion of important statistics, and most of the data were weaker than expected. Vista Brokers analysts say that amid such data, the confidence of market participants that the Bank of Japan will take new measures to stimulate the economy is boosting. A consumer price index in the country continues to check the growth. In February, CPI rose by 2.2% vs. expected 2.3% and previous rate 2.4%. The consumer price index ex-fresh food showed an increase of 2.0% against expected 2.1%, as well as the consumer price index ex-food, energy. We should also note that consumer price indices for the Japanese capital Tokyo were fully in line with forecasts, as well as data on unemployment. In February, the unemployment rate in Japan fell from 3.6% to 3.5%. Data on changes in retail sales were worse than expected. During the last winter month this index increased by 0.7% mom and fell by 1.8% yoy, against expectations of 0.9% and -1.4% respectively. Recently, market participants and financial analysts are talking more about the possibility that the Bank of Japan will have to expand its already massive bond buying program, as the central bank did not succeed to achieve the inflation target of 2% yet. Interestingly, the target for consumer prices was established in April 2013, so that next month will be two years, during which the Bank of Japan is trying to achieve this target. In the way of the central bank are both political mistakes, such as sales tax increasing, and bad luck, by which we mean a decrease in oil prices. Meanwhile, experts say that Japan's central bank is creating its own bubble in the country's securities market and risks to monopolize the market of government bonds. At the end of 2014 the Bank of Japan bought ETF assets in the amount of 3.85 trillion yen, and plans to buy 3 trillion yen annually. But the current ETF market value is only 11.5 trillion yen, that is, the market will be entirely in the hands of the central bank by the end of 2017. Then there will be only stocks. The central bank periodically enters to the market and buy stocks for 30-40 billion yen in the first half of the trading day, when the main trend has not formed yet. Naturally, then price goes up. Now Bank owns 2% of the total market in Japan, but this number is constantly increasing. [/QUOTE]

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