BOJ minutes from the July 11 meeting were released with members emphasizing the responsibility the government has to promote measures that maintain credible fiscal policies in order to ensure interest rate stability. The focus of the committee's deliberations were:
- Interest rates could rise if the market loses confidence in JGBs
- Easing effects constrained without fiscal trust
- JGB buys putting downward pressure on yields
- easing effects firmly taking hold
- price expectations have turned favorable
Australia's (NAB) Business Confidence survey for August rose to +9, exceeding both market expectations for a rise of +6 and last month's reading of -3. This was the highest level since May 2011 as prospects of a change of government lifted sentiment in all industries. The business conditions gauge, a measure of hiring, sales and profits, was -6 vs. -7 in July. While this was an optimistic report, the slump in employment conditions to its lowest level since 2009 is still cause for worry. Aussie rose on this release and is currently trading at its highest level since July 28 as the market is pricing in a 63% chance that the RBA will leave rates on hold for the remainder of the year.