Statement from the Bank of Japan after its June 2023 monetary policy meeting.
No change.
- BOJ maintains short-term interest rate target at -0.1%
- maintains 10-year
JGB yield target around 0% - maintains band
around 10-year JGB yield target at up and down 0.5% each - made decision on YCC
by unanimous vote
The BOJ made an amendment to the principal terms and conditions of the Complementary Deposit Facility
- But adds that there is no change
in the framework of the Complementary Deposit Facility and the
interest scheme to promote lending
The BOJ on the economy:
- Japan’s economy picking up
- Japan’s economy
likely to continue recovering moderately - Japan’s core
consumer inflation likely to slow pace of increase towards middle of
current fiscal year - Exports, output
moving sideways - Capex increasing
moderately - Consumption
increasing moderately - Inflation
expectations moving sideways after heightening - Uncertainty
regarding Japan’s economy is very high
Note that the BOJ again repeats it expects the pace of inflation to slow from the middle of this Fiscal Year. This would be around September/October (Japan’s Fiscal Year begins on April 1).
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The impact of the announcement has been a move higher for yen crosses. What little doubt there was about BOJ policy change has been removed until the next meeting, scheduled for July 27 & 28. Nikkei 225 futures are up also.
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Due later:
- Bank of Japan Governor Ueda press conference at 0630 GMT (0230 US Eastern time)
This article was written by Eamonn Sheridan at www.forexlive.com. Source