The Bank of Japan announced no change to monetary policy as widely expected. The BOJ short-term interest target kept at -0.1% and the 10 year JGB yield target remains around 0%. BoJ revised its CPI and GDP forecasts lower.
The Bank of Japan announced no change to monetary policy as widely expected. The BOJ short-term interest target kept at -0.1% and the 10 year JGB yield target remains around 0%. BoJ revised its CPI and GDP forecasts lower.
BoJ Chief Kuroda
BOJ October 2021 Monetary Policy Decision Statement
Highlights
Rates and ETF
- Bank of Japan short-term interest target kept at -0.1%
- 10 year JGB yield target remains around 0%
- ETF buy cap stays at 12tln yen
BOJ Projection Highlight
- Core cpi median forecast for fiscal 2021/22 at 0.0% vs +0.6% in July
- Core cpi median forecast for fiscal 2022/23 at +0.9% vs +0.9% in July
- Core cpi median forecast for fiscal 2023/24 at +1.0% vs +1.0% in July
- Real GDP median forecast for fiscal 2021/22 at +3.4% vs +3.8% in July
- Real GDP median forecast for fiscal 2022/23 at +2.9% vs +2.7% in July
- Real GDP median forecast for fiscal 2023/24 at +1.3% vs +1.3% in July
BOJ Quarterly report:
Headlines via Reuters
- Japan’s economy likely to recover, accelerate pace of growth as pandemic’s impact subsides
- Japan’s consumer inflation likely to gradually accelerate must be vigilant to risks including developments of pandemic, impact on economies
- Japan’s economy remains in severe state but picking up as a trend
- Exports, output weak due to supply constraints but increasing as a trend
- Capex showing weakness in some sectors but picking up as a whole
- Service spending remains under pressure but consumption showing signs of pickup
- Japan inflation expectations picking up
- Exports, output to slow temporarily on supply constraints
- Signs of improvement likely to spread from corporate to household sector
- Auto output to slow briefly on supply constraint but solid global it demand to help overall output continue to increase
- Japan’s financial system stable as a whole
- Japan’s financial intermediation may stagnate if bank profits come under prolonged pressure from covid-19
Source: BoJ
From The Traders Community News Desk