BOJ interest rate decision 21 September 2017

  • Bank of Japan leaves the target o/n rate unchanged at -0.10%
  • Keeps the 10 year JGB yield target around zero
  • Keeps the target of buying up to 80trln JPY worth JGB’s per year .

No surprises, although there could have been a hint at abandoning the total JGB per annum purchases, as they already de facto started to buy less, 74 trln past 12 months.
Keeping the YCC( Yield Curve Control) in place makes the JGB target quite inessential.
Note the vote back to 8-1 as Mr Suzuki(audit-board member BOTM) and Mr Takaota(MUFJ research and consulting Co), both expected to be Mr Kuroda supporters have replaced leaving outgoing dissenting members Kiuchi and Sato(previous vote 7-2). Takaota actually dissented, noting YCC is not enough to meet FY’19 inflation target.
Economic assessments unchanged.
Awaiting Kuroda-san press conference , scheduled for 6.30 GMT.

The JPY remains largely unchanged at 112.42 vs USD and 133.65 vs Euro .

Link to the Boj report :


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