The Bank of Japan meeting has concluded and the December 2018 Statement on monetary policy released
- Maintains short-term interest rate target at -0.1 pct
- Maintains 10-year JGB yield target around zero pct
- Leaves unchanged pledge to buy JGBs in flexible manner so its holdings increase at annual pace of around 80 trln yen
- Leaves unchanged forward guidance on rates, says will keep current extremely low rates for extended period of time
More:
- Decision on yield curve control made by 7-2 vote, board members Harada, Kataoka dissent
- Harada opposed forward guidance
- Harada said forward guidance needs to make stronger link between policy rates and price target
- Harada further said the BOJ needs to commit to additional easing if it downgrades mid to ling term inflation expectations
Quick headlines via Reuters
Yen, Nikkei 225 are both little changed.
Something of interest … the pledge to buy 80tl yen of JGBs continues. The Bank will get nowhere close to buying this amount. This has been going on for nearly a couple of years now but the bank refuses to drop that commitment from the Statements.
