Bank of Japan announces their main policy planks remain in place untouched, as expected.
USD/JPY has jumped sharply higher.
- Maintains short-term interest rate target at -0.1%
- Maintains 10-year JGB yield target around 0%, with 1% upper reference rate kept unchanged
- YCC decision unanimous
- BOJ makes no change to forward guidance
More
- Economy has recovered moderately
- Private consumption
continues to rise moderately - Y/y rate of rise in
CPI slower than a while ago mainly due to effects of pushing down
energy prices - But CPI has been
around 3% recently due to pass-through of cost increases to consumer
prices - Inflation
expectations have risen moderately - Economy likely to
continue recovering moderately for time being - Japan economy
projected to continue growing at pace above potential growth rate - Rate of rise in CPI
likely to be above 2% through fiscal 2024 - Thereafter, rate of
rise projected to slow down - Underlying CPI
inflation likely to increase gradually toward achieving price
stability target
- Japan’s economy likely to continue recovering moderately
- Inflation
expectations heightening moderately - Trend inflation
likely to gradually accelerate - Inflation likely to
move above 2% then slow pace of increase thereafter - Uncertainty
regarding japan’s economy, prices remain very high - Must scrutise fx,
market moves and their impact on economy, prices
This article was written by Eamonn Sheridan at www.forexlive.com. Source