Setback for Catalonian Independence
The party of Catalonian President Mas actually lost twelve seats in the weekend regional elections − contrary to indications of pre-election opinion polls. It looks like a setback for the pro-independence movement in Catalonia, although a coalition of like-minded pro-independence parties can still be formed which could eventually call for a referendum on independence at some point during the lifetime of the next administration. The minutes from the BoJ’s Oct 30th policy meeting revealed that the two newest appointees to the policy board – Kiuchi and Sato – dissented against the rather benign inflation outlook contained in the semi-annual outlook report. Governor Shirakawa had already revealed their dissents at the post-meeting press conference, but the market seemed to take greater interest today with USDJPY trading up 20 pips before settling back down again. Both dissenters disagreed with the view that inflation would trend upwards towards the BoJ’s goal of 1% over the course of 2014 – essentially implying that policy settings are not yet easy enough to guarantee such a benign outcome.
Click here to read the full report: UBS Morning Adviser Europe
UBS Investment Bank