The Bank of Japan June 2018 meeting has concluded and the statement issued
The Bank downgrades its assessment of CPI
Leaves policy unchanged, the major legs of its policy are:
- BOJ 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 more or less at current pace so its holdings increase at annual pace of around 80 trln yen
More:
- Says Japan's economy expanding moderately, keeps assessment unchanged
- Cuts assessment on consumer inflation
- Inflation expectations moving sideways
- Inflation likely to accelerate towards 2 pct as output gap improves, inflation expectations heighten
- CPI in range of 0.5 to 1 pct
And, for the regular dissenter, take it from here Kataoka-san!
- Decision on yield curve control made by 8-1 vote, board member Kataoka dissents
- Kataoka dissents against description of prices, saying low chance of prices rising towards 2 pct
- Kataoka says need to buy JGBs so yield for duration of 10 years or longer falls further
- Kataoka says BOJ should clarify it will ease further if domestic factors delay achievement of price target
The quick headlines are via Reuters
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So, there you have it:
- policy on hold
- including telling us that they'll be buying around around 80tln yen of JGBs in the year … which they won't it'll be more like 50tln and everyone knows it but the BOJ too scared to announce this his 'cause it might see the yen appreciate
- Downgrades it view on inflation, which was expected
- Kataoka dissented, as usual
USD/JPY up a few points, not much in it.
Overnight EUR/USD dropped what, 300 points on the ECB? 3 big figures, yeah?
Here in Asia …. we get a 10 pip rally in USD/JPY. Thanks BOJ! :-D
Oh yeah, stay tuned for Governor Kuroda press conference, due at 0630GMT
