Highlights of the Bank of Japan decision:
- Pledges to increase monetary base at annual pace of ¥60-70 trillion (same as prior)
- Says economy continues to recovery modestly, economic assessment unchanged
- Revises up assessment on capital expenditures, says capex increasing moderately
- Votes 8-1 against Kiuchi proposal (once again) to make 2% inflation medium-to-longterm goal
- Views on exports unchanged saying they have recently leveled off
- BOJ sees core CPI at about 1.25% for some time (unchanged from prior)
- The full text of the BOJ decision
USD/JPY initially up to 101.39 from 101.25. There’s nothing to suggest more easing but the lack of fresh enthusiasm about strong Q1 data keeps easing later in the year on the table.
Kuroda will hold a news conference at 0630 GMT.