BOJ announce adopts negative rates policy

Author: Eamonn Sheridan | Category: Central Banks

The Bank of Japan monetary policy meeting has concluded

THIS IS BIG NEWS FROM THE Bank of Japan

  • BOJ eases monetary policy further
  • Adopts negative interest rate policy, to charge interest for excess reserves financial institutions park with BOJ
  • Adopts negative 0.1 pct interest for excess reserves financial institutions park with BOJ
  • BOJ  decision on negative rates was made by 5-4 vote
  • Maintains pledge to increase monetary base, its main policy target, at annual pace of 80 trln yen
  • Decision on monetary base was made by 8-1 vote
More
  • BOJ's median core cpi forecast for fiscal 2016/17 at +0.8 pct vs +1.4 pct projected in oct
  • BOJ's median core cpi forecast for fiscal 2017/18 at +1.8 pct vs +1.8 pct projected in oct
  • BOJ's median core cpi forecast for fiscal 2015/16 at +0.1 pct vs +0.1 pct projected in oct
  • BOJ expects to meet 2 pct inflation goal around first half of fiscal 2017
  • BOJ's price estimates based on view crude oil expected to rise from recent $35 per bbl to over $40 towards end of projection period

quick headlines via Reuters
More  (I may have repeated myself a little with some these):
  • BOJ to charge interest for excess reserves financial institutions park with BOJ
  • Will cut interest rate further into negative territory if judged necessary
  • Negative interest rate will be adopted in tandem with QQE
  • No change in BOJ's base money target of 80 trln yen
  • Will introduce 3-tier system on rates
  • Will aim to lower short end of yield curve, exert further downward pressure on rates via combination of negative rate, large-scale JGB buying
  • BOJ pushes back timing for achieving its 2 pct inflation target in quarterly report
  • Japan CPI likely to reach 2 pct in first half of fiscal 2017/18
  • Will adopt zero rate for its loan support programme, fund-supplying operations
  • Makes no change in pace of JGB, ETF, J-REIT purchases
  • Will examine risks to econ, prices, take additional easing steps if needed using quantity, quality, and interest rate
  • Acted to preempt manifestation of risk of market volatility hurting business confidence

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Added:

The USD/JPY moves:

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And, still to come later, Bank of Japan Governor Kuroda's press conference due at 0630GMT

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