BOJ April 2018 Monetary Policy decision and Economic Outlook on 27.04.2018
- Leaves Interest Rate on Excess Reserves (IOER) unchanged at -0.10%
- Maintain its policy framework of “QQE with Yield Control” around 0.00%
- Maintains asset purchases at an annual pace of JPY 80T
- Maintains the increase of ETF holdings at an annual pace of JPY 6T
- Kataoka continues to dissent
- The statement on Monetary policy
BOJ Economic Outlook Report
- Deletes Timeframe mention for the Price Target achievement
- Impact of tax hike is among risks to the economic outlook
- Inflation likely to accelerate towards 2% as output gap improves
- Risks to price outlook skewed to the downside for fiscal 2019
- Consumer Inflation expectations moving sideways around 1%
- Momentum for achieving price target sustained but lacking steam ( that’s an understatement looking at Tokyo’s CPI today)
- GDP forecasts:
- Raises FY18/19 GDP growth from 1.4% to 1.6%
- Raises FY19/20 GDP growth from 0.7% to 0.8%
- Sets FY20/21 GDP at 0.8%
- Inflation Outlook:
- Maintains FY18/19 core CPI outlook at 1.4%
- Maintains FY19/20 core CPI (ex impact of consumption tax) at 1.8%
- Sets FY20/21 core CPI at 1.8
- The full text of the Outlook report
Total status quo then, buying time to reach the goal. JPY doesn’t budge at all 109.20 around for the moment. I can’t see a big impact either, just confirming nothing is changing and risks still skewed to the downside should be keep the JPY in check.
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