The main components of policy:
- short-term interest rate target at -0.1%
- 10-year bond yields target around 0%
unchanged.
- The Bank has downgraded its overall assessment of the economy.
- will take additional easing steps without hesitation as needed, with eye on impact of covid-19 pandemic
- leaves intact guidance that it expects short-, long-term policy interest rate to remain at present or lower levels
- japan's economy likely to recover as pandemic's impact subsides
- core consumer inflation likely to clearly accelerate pace of increase for time being
- Japan's economy picking as a trend
- global markets showing unstable moves in wake of Russia's invasion in Ukraine
- exports, output increasing as a trend, though getting affected by supply constraints
- pick-up in consumption moderating
- inflation expectations heightening gradually
- trend inflationary pressure likely to heighten ahead
- there is very high uncertainty on how Ukraine developments affect japan's economy, prices via markets, raw material prices, overseas economies
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Background to this:
Here is what’s on the economic calendar in Asia today - Bank of Japan policy meeting day
Bank of Japan monetary policy decision due today - preview
Still to come:
Bank of Japan Governor Kuroda's press conference follows at 0630 GMT.
