Bank of Japan monetary policy meeting April 2023
- Maintains short-term interest rate target at -0.1%
- Maintains 10-year JGB yield 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:
And, previews:
- 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
