The January 2022 monetary policy statement from the Bank of Japan. Policy remains unchanged, main points:
- The BOJ has maintained short term term interest rate target at -0.1%
- maintains 10-year JGB yield target around 0%
Forecasts boosted for CPI in 2022 and 2023, still well short of the target, 2%, rate. GDP forecast changes also.
- core CPI median forecast for fiscal 2022 at +1.1% vs +0.9% in October
- core CPI median forecast for fiscal 2023 at +1.1% vs +1.0% inOctober
- core CPI median forecast for fiscal 2021 at 0.0% vs 0.0% inOctober
- real GDP median forecast for fiscal 2022 at +3.8% vs +2.9 % inOctober
- real GDP median forecast for fiscal 2023 at +1.1% vs +1.3% inOctober
- real GDP median forecast for fiscal 2021 at +2.8% vs +3.4% inOctober
BOJ QUARTERLY REPORT:
- risks to Japan's price outlook roughly balanced
- risks to Japan's economic activity are skewed to downside
- risk to economic activity generally balanced thereafter
- projected that pass-through of raw material cost increases will progress moderately