BOJ announces it leaves monetary policy unchanged

Bank of Japan October 2022 monetary policy statement

The two main policy planks are:

• the minus 0.1% target for short-term interest rates
• the target for the 10-year bond 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 at around 0% (+25bp ceiling, with a pledge to conduct unlimited, daily, fixed-rate bond-buying operations in its defence)

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Outlook report, key forecasts:

• • Core-core CPI median forecast for fiscal 2022 at +1.8 vs +1.3% in July
  • Core-core CPI median forecast for fiscal 2023 at +1.6%vs +1.4% in July
  • Core-core CPI median forecast for fiscal 2024 at +1.6% vs +1.5% in July

• Real GDP median forecast for fiscal 2022 at +2.0% vs +2.4% in July
• Real GDP median forecast for fiscal 2023 at +1.9% vs +2.0% in July
• Real GDP median forecast for fiscal 2024 at +1.5% vs +1.3% in July

Commentary from the report:

• Japan's economy likely to recover as impact of pandemic, supply constraints subsides
• Uncertainty regarding japan's economy extremely high
• Risks to price outlook skewed to upside
• Risks to economic outlook skewed to downside
• Must be vigilant to financial, currency market moves and their impact on japan's economy, prices
• Japan's economy is picking up
• Japan's 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 expectations heightening
• Consumption increasing moderately
• Japan's core consumer inflation moving around 3% due to rising energy, food, durable goods prices
• Overseas economies showing signs of slowdown due to global inflationary pressure, central banks' interest rate hikes
• Japan's economy to recover due to expected rise in pent-up demand, despite headwinds from overseas economic slowdown
• Corporate profits likely to remain at high levels due to pent-up demand, positive effect of weak yen

• Core consumer inflation likely to slow pace of increase toward middle of next fiscal year

• Japan's output gap to turn positive around latter half of fiscal 2022

Of more significance is this:

• UNDERLYING RISE IN INFLATION LIKELY TO HEIGHTEN MEDIUM-, LONG-TERM INFLATION EXPECTATIONS AND LEAD TO SUSTAINED RISE IN INFLATION ACCOMPANIED BY WAGE GAINS

• BOJ WILL REVIEW ETF BUYING

Thos two in bold as it you are looking for a pivot from the BOJ that's about it for this meeting.

The full text of the statement is here