- They look for the new government to overhaul its monetary authority mandate by switching from an inflation goal of 1% to an explicit inflation target of 2%.
- This will have a appreciatory one-off impact on the JPY of over 10%, from JPY 78 to JPY 88 over six months.
Analysis details (10:07)
- Note that the Japanese election is this Sunday.
- The LDP and its coalition partner New Komeito are poised to win more than 300 of the 480 seats in the lower house of parliament, according to a Nikkei newspaper poll published today.
- An explicit inflation target of 2% has been one of the core parts of the LDP strategy in the run up to the election.
14 Dec 2012 - 10:01 - Forex - Source: Barclays Capital
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