Bank of Japan monetary policy statement for their December 2019 meeting
Policy is held steady but there are a few points to note, a little downbeat.
Policy:
- maintains short-term interest rate target at -0.1%
- maintains 10-year JGB yield target around 0%
- maintains forward guidance on interest rates, says they will remain at current or lower levels for as long as needed to guard against risk momentum for hitting price goal may be lost
- maintains assessment Japan's economy expanding moderately as a trend
- cuts assessment on industrial production
- industrial output is falling due to impact of natural disasters
- Core CPI moving around 0.5%
- risks regarding overseas economy remain big so must watch impact on corporate, household sentiment
- Japan economy likely to continue expanding moderately as a trend
- BOJ decision on yield curve control made by 7-2 vote, board members Harada, Kataoka dissent
- Kataoka repeats call to cut short-term interest rate target
The BOJ has kept their asset purchase target at 80tln yen. They don't talk about this much any more 'cause they are in no danger of hitting it.
