Via Daiwa Capitl Markets in London on Kuroda's appearance yesterday, and more:

  • Comments from Kuroda in the Diet ... he acknowledged what has been evident in the data for some time, i.e. that the BoJ's rate of asset purchase has slowed.
  • Indeed, since the start of the year, the BoJ's holdings of JGBs have increased at an annual rate close to ¥60trn, rather than the ¥80trn objective stated by the Policy Board
  • However, just as that trend has been obvious in the BoJ's own figures, its officials, including Kuroda, have also for some time noted that the central bank's primary target is control of the yield curve - something they are currently achieving with little concern - with the quantitative aspect of policy now very much a secondary consideration. That point was reiterated again by Kuroda today.
  • And with the markets failing to respond to today's headlines, and - in light of the underwhelming inflation outlook alluded to in today's unilluminating summary of opinions expressed at last month's Policy Board meeting - expectations that the current yield curve targets will be maintained for some time to come, it would seem relatively harmless for the BoJ to revise its official language on the asset purchase target at a forthcoming Policy Board meeting.

Bolding is mine