BOJ maintains YCC band unchanged, tweaks forward guidance

Bank of Japan monetary policy meeting April 2023

• Maintains short-term interest rate target at -0.1%
• Maintains 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 around 0%
• Maintains band around its 10-year JGB yield target at up and down 0.5% each
• Makes decision on YCC by unanimous vote

So no change to policy settings above there at all. Not wholly unexpected, Ueda had not given indications he was in a rush.

And:

• To conduct examination of monetary policy
• BOJ tweaks forward guidance
• Will take additional easing steps without hesitation as needed while striving for market stability
• Removes reference to covid-19 pandemic from its forward guidance
• Removes forward guidance that pledged to keep interest rate at current or lower levels
• Will spend 1 to 1-1/2 years to conduct review on monetary policy guidance
• Japan's economy fell into deflation in late 1990s, achieving price stability has been a challenge for long period of 25 years
• During this period, boj has implemented various monetary easing steps
• These measures have interacted with, influenced wide areas of Japan's economic activity, prices and financial sector
• In light of this, BOJ has decided to conduct broad-perspective review of monetary policy

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There is a lot of info above ... but check out that bolded point. Taking 12 to 18 months to conduct its review? That's a long way from speculation not too many weeks ago that there would be substantial changes at this meeting.

Yen has weakened, although not a huge move.

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For background:

Earlier:

• Japan media report that the BOJ will conduct an examination of past monetary policy

And, previews:

• Bank of Japan monetary policy decision due today - preview ("target 128 for end of Q2")

• Preview - BOJ decision due Friday, 28 April 2023: "cannot fully rule out a change" in YCC

• BOJ meet this week - preview - YCC to be abandoned but not until July
• BOJ meeting preview - Deutsche Bank expect a policy revision, 3 scenarios
• Has BOJ Gov Ueda dismissed any change to YCC at this week's policy meeting? Looks like it

• BOJ meeting this week - preview - the BOJ may move on a 5-year JGB target option