The headline is pretty much what was expected form the Bank of Japan today

CPI forecasts are a focus, here they are … note the cuts:

  • Median core CPI forecast for fiscal 2019/20 at +0.9 pct vs +1.4 pct in October
  • Median core CPI forecast for fiscal 2020/21 at +1.4 pct vs +1.5 pct in October
  • Median core CPI forecast for fiscal 2018/19 at +0.8 pct vs +0.9 pct in Octoebr

BOJ keeps monetary policy steady

  • maintains short-term interest rate target at -0.1 pct
  • maintains 10-year JGB yield target around zero pct
  • leaves unchanged pledge to buy JGBs in flexible manner so its holdings increase at annual pace of around 80 trln yen
  • leaves unchanged forward guidance on rates, says will keep current extremely low rates for extended period of time
  • decision on yield curve control made by 7-2 vote, board members Harada, Kataoka dissent
  • BOJ decides to extend March deadline for lending scheme aimed at encouraging financial institutions to boost lending
  • To extend lending scheme for one year
  • Japan's economy expected to continue expanding through FY 2020
  • economy's momentum for hitting price goal sustained but lacking strength
  • risks to price outlook skewed to downside
  • risks to economic outlook skewed to downside
  • medium- to long-term inflation expectations have been more or less unchanged
  • medium-, long-term inflation expectations likely to rise gradually
  • decides to extend lending scheme to support growth foundations for another year
  • core CPI remains in weak trend compared with economic expansion, tight labour situation
  • expect consumer prices to gradually rise towards 2 pct
  • overseas economies continuing steady growth as a whole
  • expect overseas economies to continue steady growth although must pay attention to us-china trade friction and various recent moves

More forecasts:

  • Median real GDP forecast for fiscal 2019/20 at +0.9 pct vs 0.8 pct in October
  • Median real GDP forecast for fiscal 2020/21 at +1.0 pct vs 0.8 pct in October
  • Median real GDP forecast for fiscal 2018/19 at +0.9 pct vs 1.4 pct in October

And , from the BOJ quarterly report on risks:

  • risks to economy skewed to downside, mainly via overseas economic developments
  • no sign so far of excessively bullish expectations in asset markets, banks' activities
  • prolonged downward pressure on banks' profits from low rates could destabilise financial system
  • risk of financial system destabilising not big for now but outlook warrants attention
  • regarding the outlook for prices, risks skewed to downside especially concerning developments in medium to long-term inflation expectations

The quick summary headlines are via Reuters. But if you'd like the full text: