The Bank of Japan meeting has concluded and the statement is out now
NO CHANGE in policy
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Quick Headlines via Reuters
BOJ keeps monetary policy steady, pledges to increase monetary base at annual pace of 80 trln yen
GDP forecasts changed:
- Median real GDP forecast for fiscal 2015/16 at +1.7 pct vs +2.0 pct projected in April
- Median real GDP forecast for fiscal 2016/17 at +1.5 pct vs +1.5 pct projected in April
- Median real GDP forecast for fiscal 2017/18 at +0.2 pct vs +0.2 pct projected in April
Dissent:
- BOJ's policy decision was made by 8-1 vote
- Board member Kiuchi votes against policy decision
- Kiuchi proposed tapering annual jgb purchases to 45 trln yen, which was turned down by majority vote
- Kiuchi proposed keeping asset buying, zero rates for as long as needed under flexible price target, which was turned down by 8-1
CPI:
- Median core CPI forecast for fiscal 2015/16 at +0.7 pct vs +0.8 pct projected in April
- Median core CPI forecast for fiscal 2016/17 at +1.9 pct vs +2.0 pct projected in April
- Median core CPI forecast for fiscal 2017/18 at +1.8 pct vs +1.9 pct projected in April
- Says Japan's economy continues to recover moderately, keeps assessment unchanged
- Japan's economy expected to continue recovering moderately
- Slightly cuts view on exports, output
- Says exports, output have been picking albeit with some fluctuations
- BOJ's price estimate based on view crude oil expected to rise moderately from recent $60 per bbl to about $70 towards end of projection period
USD/JPY and yen crosses doing nothing ... the decision and statement were pretty much as expected
- Coming up next ....
BOJ Governor Kuroda will hold his usual press conference at 0630GMT:
- He is likely to repeat that the BOJ won't hesitate to ease policy further if data suggest growth and inflation are not meeting BOJ expectations
