The Surprising BoJ Statement That Will Make You Gasp
Bank of Japan Has Its Own Agenda
The Bank of Japan disappointed markets with its additional easing. The BoJ is seen to be too hesitant and its move actually follows the EBC and BoE recent decisions to hold off easing.
It seems that BoJ may want more help from government in terms of the stimulus and the Bank is not prepared to do anything in advance.
Market reactions were mixed. On the one hand we have noticed huge gains on the yen which is up by 1.6% against the US dollar. On the other hand Nikkei 225 has rebounded from intra-day low which was appointed a few minutes after the BoJ announcement.
Another interesting fact is a rebound of Japanese bond yields. The yield on 10-year JGBs has increased to negative -0.18% from -0.28%. Treasuries climbed 5 bp which was the highest gain since 2012.
Ready for the Bank of Japan's Statement? Here it is:
BOJ says to increase size of lending programme that provides dollar funding to Japanese financial institutions
BOJ buys 6 trln of ETF’s vs. 3.3 earlier
Rates and QQE remain unchanged
Says will conduct comprehensive assessment of effects of QQE with negative rate policy at next rate review
BOJ says Kuroda as chairman of board instructed staff to prepare deliberations on assessment at BOJ’s next meeting
BOJ quarterly report: Japan to see cpi reach 2 pct during fiscal 2017
There is strong uncertainty on timing for hitting 2 pct target mainly due to overseas risks
Japan economy likely to expand moderately as a trend
Inflation outlook for fiscal 2017 and 2018 are roughly unchanged from initial estimates
- Japan core CPI expected +0.1 pct in fy2016/17 vs +0.5 pct projected in April
- Japan core CPI expected +1.7 pct in fy2017/18 vs +1.7 pct projected in April
- Japan core CPI expected +1.9 pct in fy2018/19 vs +1.9 pct in April
- Japan real GDP expected +1.0 pct in fy2016/17 vs +1.2 pct projected in April
- Japan real GDP expected +1.3 pct in fy2017/18 vs +0.1 pct projected in April
- Japan real GDP expected +0.9 pct in fy2018/19 vs +1.0 pct projected in April
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