The Bank of Japan (BOJ) July policy meeting has concluded.
- BOJ keeps monetary policy steady by unanimous vote, pledges to increase monetary base at annual pace of 60-70 trln yen
- Japan real GDP expected +1.0 pct in fy2014/15 vs +1.1 pct projected in April
- Japan real GDP expected +1.5 pct in fy2015/16 vs +1.5 pct projected in April
- Japan real GDP expected +1.3 pct in fy2016/17 vs +1.3 pct projected in April
- Core CPI expected +1.3 pct in fy2014/15 vs +1.3 pct projected in April, excluding effect of sales tax hike in April
- Core CPI expected +1.9 pct in fy2015/16 vs +1.9 pct projected in April, excluding effect of sales tax hike in April
- Core CPI expected +2.1 pct in fy2016/17 vs +2.1 pct projected in April, excluding effect of sales tax hike in April
- BOJ board turns down by 8-1 vote proposal by its member Kiuchi to make 2 pct inflation target a medium- to long-term goal
- BOJ says economy continues to recover moderately as a trend, keeps assessment unchanged
- Capex rising gradually as corporate profits improve
- Factory output rising moderately as a trend although with some fluctuations
- Business sentiment has generally stayed at a favourable level
- Year on year rate of increase in CPI likely to be around 1.25 percent for some time
- Japan’s economy to continue moderate recovery as a trend with effect of sales tax hike seen gradually subsiding
Headlines via Reuters
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There are no surprises here …
The yen is barely changed. But Kuroda could run around Ginza naked shouting “We’re all doomed!!!” and I doubt the yen would do anything.
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Actually, Kuroda is next up at 0630GMT for his press conference. Its been relocated to the Ginza district and Kuroda is taking his clothes off now … so we could be in for something here ….
