- Bank of Japan monetary policy decision and statement for October 2018
Bank of Japan keeps monetary policy steady as widely expected
- maintains short term interest rates target at -0.1%
- maintains 10 year JGB yield target around 0%
- prior report
- The full statement can be found HERE
Other headlines:
- leaves unchanged place to buy JGBs in a flexible manner so as holdings increased at an annual pace around ¥80 trillion
- median core CPI forecast for 2018/19 at 0.9% versus 1.1% in July
- median core CPI forecast for 2019/20 1.4% versus 1.5% in July
- median core CPI for 2000/21 at 1.5% versus 1.6% in July
- median real GDP forecast for fiscal 2018/19 at 1.4% versus 1.5% in July
- median real GDP forecast for 2019/20 and 0.8% versus 0.8% in July
- median real GDP forecast for fiscal 2020/21 and 0.8% versus 0.8% in July
- changes language on financial system risks and quarterly report on economy, prices
Highlights of BOJ quarterly report:
- Japan's economy expected to continue expanding moderately
- economies momentum for hitting price goal sustained a lacking strength
- no sign so far of excessively bullish expectations in asset markets, financial institutions activities
- risk of financial system destabilizing not big for now but outlook warrants attention
- risks to price outlooks skewed to downside
- risks to economic outlooks skewed to downside
- inflation likely to gradually accelerate toward 2%
- developments in overseas economies including protectionism pose risks to economic outlook
- medium to long-term inflation expectations have been more or less unchanged
- pace of improvement in prices, inflation expectations has remained slow compared to improvements in economy, job market
- if confidence and fiscal sustainability declines economy may underperform baseline scenario
The USDJPY is little changed after the decision and headlnes.
The Nikkei 225 is up 332.71 points or 1.55% at 21790. The high today reached 21815.37. The price is not so far from that level (25 points) The low today is at 21530.39.
- median real GDP forecast for fiscal 2018 2019 at 1.4% versus 1.5% projected in July
