Bank of Japan June 2019 monetary policy statement
BOJ maintains short-term interest rate target at -0.1%
- maintains 10-year JGB yield target around 0%
- leaves unchanged forward guidance on rates, says will keep current extremely low rates at least through spring 2020
- leaves unchanged pledge to buy JGB in flexible manner so its holdings increase at annual pace of around 80 trln yen
Downside risks on overseas economies high
- must watch how downside risks on overseas economies could affect Japan's corporate, household sentiment
- exports, output have shown some weaknesses
Says Japan's economy is expanding moderately as a trend although exports, output affected by overseas slowdown, keeps assessment unchanged
- Japan's economy likely to continue expanding moderately as a trend
Decision on yield curve control made by 7-2 vote, board members Harada, Kataoka dissent
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Kuroda presser due at 0630GMT. This statement is lacklustre from the BOJ. Nothing new nor more dovish than usual. Kuroda will have to kick it up a notch on the dovishness if he wants the yen not to appreciate further form here.
