Bank of Japan monetary policy statement – no change to policy (as expected)

Bank of Japan monetary policy deciison comes out per consensus expectation, no change.

  • policy rate left at -0.1%
  • JGB target (10yr) remains around 0%
Also expected, the Bank has revised up its economic assessment:
  • revises higher its outlook for exports and output
  • says the economy is in a severe state but appears to be picking up
  • capex is falling , corporate profits and sentiment is worsening
  • consumption gradually picking up
  • CPI is likely to hover in negative territory for the time being
  • must watch whether the financial system is functioning smoothly, stability is maintained
USD/JPY is barely responding, which is not much of a surprise given the basically zero expectation of any change in policy – which has indeed been the result.