Key highlights of the week ended April 15

Source: Dukascopy Bank SA
Japan
Bank of Japan Governor Haruhiko Kuroda said the central bank stood ready to expand monetary stimulus again if recent weaknesses in inflation expectations persist, stressing that there are "many ways" to do so to reach the price target. Kuroda also dismissed the view the BoJ's decision in January to introduce negative interest rates was directly aimed at weakening the Japanese Yen to give Japan's exports a competitive advantage. While maintaining his optimistic view of Japan's economic outlook, Kuroda admitted that inflation expectations have been weakening in recent months. The BoJ may reconsider its current projection that inflation will hit 2% around the first half of fiscal 2017 if assumptions it was based on, such as oil price moves, change. 

Euro zone
German politicians and officials have repeatedly brutally castigated the European Central Bank for its monetary policy, with the latest critics coming from the outspoken German Finance Minister Wolfgang Schaeuble. Central banks in Europe and the US must gradually abandon easy-money policies, Mr Schaeuble said. He also partly blamed the ECB's policy for the success of the right-wing Alternative for Germany (AfD) in recent regional elections. Mr Schaeuble and ECB President Mario Draghi will probably hold talks in Washington this week. G-20 policy makers will meet from April 14-15, with finance ministers and central-bank governors from 188 countries gathering from April 15-17 for the spring meetings of the IMF and World Bank to discuss how to revive weak global growth. 

Canada
The Bank of Canada maintained its key interest rate at 0.5%, saying the Canadian economy continues to adjust to the oil price shock. The central bank admitted that GDP growth in the first quarter appeared to have been unexpectedly robust, but some of that strength was due to temporary factors and is likely to wane in the second quarter. Even though non-resource exports are predicted to strengthen, their profile is weaker than previously thought, partly due to slower foreign demand growth and the higher Canadian Dollar. The economy continues to create net new employment, especially in the services sector. Against this background, household spending continues to increase moderately. 

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