Bank of Japan decision for January 2021

  • Will take additional leading steps without hesitation as needed with an eye on the pandemic
  • exports are likely to slow place of increase but rising broadly thereafter
  • maintains policy balance rate at -0.1%
  • maintained GDP yield target at about 0%
  • sees fiscal year 2020 (end of March) at -5.6% vs. -5.5% previously
  • downgrades current economic assessment
  • sees fiscal year 2020 core CPI at -0.5% vs. -0.6% previously
  • sees fiscal year 2021 GDP forecast at 3.9% vs. 3.6% previously
  • sees fiscal year 2021 core CPI 0.5% vs. 0.4% previously
  • Japan's economy is likely to follow improving trend
  • sees 2022 GDP forecast 1.8% vs. 1.6% previously
  • she's extremely high uncertainty over virus impact on economy
  • decide to extend its funding program by one year
  • says that risks are tilted to the downside for economic, price outlook
  • Japan's economy has picked up as a trend
  • Bank of Japan decision was at 7-1 majority vote
  • The bank will purchase necessary amount of Japanese bonds without setting an upper limit so that 10 year JGB yields will remain at around 0%
  • the bank will actively purchase exchange traded funds and Japan real estate investment trusts for the time being so that there amounts outstanding increase at an annual pace is with the upper limit of about ¥12 trillion and about ¥180 billion respectively
  • as for CP and corporate bonds, the bank will maintain their amounts outstanding at about ¥2 trillion and about ¥3 trillion respectively
  • the bank will continue with Q QED with the yield curve control aiming to achieve the price stability target of 2%
  • it will continue expanding the monetary base until the year on year rate of increase in observed consumer price index less fresh food exceeds 2% him him him him

To view the monetary statement, click here

BOJ's quarterly report:

  • pandemic impact could subside earlier than expected if vaccines become widely available but pace of distribution and vaccines affects our uncertainties
  • January forecasts do not take into account expected cuts in cell phone charges by major carriers

The USDJPY is staying steady at 103.549.

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