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Forex news -forex broker review => Forex => Topic started by: forex4you on Jan 23, 2024, 11:08 am

Title: BOJ announce no change to policy, as expected
Post by: forex4you on Jan 23, 2024, 11:08 am
BOJ announce no change to policy, as expected

The BOJ's main policy planks remain unchanged:

  • short-term interest rate target -0.1%
  • 10-year bond yield around 0%, but flexible up to 1% (in October 2023 the Bank made it even more flexible by saying the 1% bound is only a 'reference')


Makes no changes to forward guidance on monetary policy



---

No change to core-core inflation forecasts:


  • Core-core CPI fiscal 2023 median forecast at +3.8 vs +3.8% forecast in the October Outlook Report
  • Core-core CPI fiscal
    2024 median forecast at +1.9% vs +1.9% in October
  • Core-core CPI fiscal
    2025 median forecast at +1.9% vs +1.9% in October


But core forecasts trimmed:

  • Core CPI fiscal 2023 median forecast at  +2.8% vs +2.8% in October
  • Core CPI fiscal 2024
    median forecast at +2.4% vs +2.8% in October 
  • Core CPI fiscal 2025
    median forecast at +1.8% vs +1.7% in October

GDP forecasts:

  • FY 2023 1.8% vs. 2.0% in October
  • FY 2024 1.2% vs. 1.0% in October
  • FY 2025 1.0% vs. 1.0% in October

BOJ quarterly
report:

  • Risks to economic
    activity generally balanced
  • Need to closely
    monitor whether virtuous cycle between wages and prices will
    intensify
  • Will continue with
    QQE with YCC as long as needed
  • Won't hesitate to
    take additional easing steps if needed
  • Boj will patiently
    continue with monetary easing while nimbly responding to developments
  • Japan's financial
    system has maintained stability on the whole

  • Uncertainty remains but likelihood of achieving sustained 2%
    inflation continues to gradually heighten
  • Japan's economy
    likely to continue recovering moderately
  • Must be vigilant to
    financial, fx market moves and their impact on japan's economy,
    prices
  • Inflation
    expectations gradually heightening
  • Core consumer
    inflation moving below 2.5%, partly reflecting moderate rise in
    service prices
  • Consumption
    continues to rise moderately
  • Inflation likely to
    gradually accelerate toward boj's target through end of projected
    period in quarterly report
  • Japan's output gap
    improving, likely to gradually expand ahead
  • Medium-, long-term
    inflation expectations heightening gradually
  • Positive cycle of
    rising wages, inflation to strengthen

---

Still to come, and of even more focus, is Bank of Japan Governor Ueda's press conference due at 0630 GMT.



                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: BOJ announce no change to policy, as expected (https://www.forexlive.com/centralbank/boj-announce-no-change-to-policy-as-expected-20240123/)

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