BOJ announces no change to JGB yield band

Statement from the Bank of Japan after its January 2023 monetary policy meeting.

No change.

• short term interest rate stays at -0.1% target
• 10 year JGB yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term target remains around 0%, no change to -0.5% / +0.5% tolerance band

Forecasts:

• core-core cpi median forecast for fiscal 2023 at +1.8%vs +1.6% in October
• core-core cpi median forecast for fiscal 2024 at +1.6% vs +1.6% in October

• real GDP median forecast for fiscal 2023 at +1.7% vs +1.9 % in October
• real GDP median forecast for fiscal 2024 at +1.1% vs +1.5% in October

BOJ QUARTERLY REPORT:

• Japan's economy likely to recover with easing of impact from coronavirus pandemic, supply constraints
• Price growth expected to narrow towards the middle of next fiscal year
• Prices to deviate upward in fiscal 2024
• Uncertainty over japanese economy extremely high
• Need to pay close attention to effects of financial, currency market movements on japan's economy and prices
• Price outlook skewed to upside

• inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expection is on the rise
• heightening of price growth is likely to sustainable price increase involving wage hikes
• there's a risk global economy could deviate downward due to capital outflow from emerging markets and tightening of global financial conditions
• prices could deviate downwardly as wage hikes won't strengthen as expected
• need to pay close attention to impact of elevated global inflation, rapid currency fluctuations on Japan's prices
• it takes time but prices will gradually rise towards inflation target on the back of rises in inflation expectations and wage rises

More:

• no change to yield band
• no change to yield targets
• decided to extend by one year fund operation to support financial institutions' lending
• no change to forward guidance on interest rates
• decided to enhance fund supply operation against pooled collateral
• maintains guidance that it will continue large-scale JGB buying, make nimble responses for each maturity

Full text is here:

Statement on Monetary Policy