BOJ Disappoints, No change in Policy
The BOJ has decided to stand put, keeping the policy unchanged, with the interest rate at -0.1%.
Headlines - via Reuters
BOJ says keeps monetary policy steady
Will take additional easing steps in 3 dimensions of quantity, quality and interest rate, if needed to hit price target
To adopt loan support programme for banks in areas hit by southern Japan quake
Total amount of loans for new fund supply operation is set at 300 bln yen
Will provide loans to banks at quake-hit area at zero interest rate
Japan consumer inflation to hit 2 pct during fiscal 2017
Japan econ likely to expand moderately as a trend
Negative impact on prices from energy price falls likely to remain until early fiscal 2017
Pickup in exports moderating
Private consumption is firm although some weaknesses seen
Industrial output is moving sideways but seeing some effects from earthquake in southern Japan
Inflation expectations rising as a whole in somewhat long-term perspective but weakening somewhat recently
Companies are maintaining their positive stance towards setting higher prices for their goods
Expected rises in wages will gradually push up inflation
Must be mindful of risk that market uncertainty, slowdown in emerging markets could hurt business confidence
Japan core CPI expected +0.5 pct in fy2016/17 vs +0.8 pct projected in January
Japan core CPI expected +1.7 pct in fy2017/18 vs +1.8 pct projected in January
Japan core CPI expected +1.9 pct in fy2018/19
japan real GDP expected +1.2 pct in fy2016/17 vs +1.5 pct projected in January
Japan real GDP expected +0.1 pct in fy2017/18 vs +0.3 pct projected in January
Japan real GDP expected +1.0 pct in fy2018/19
