JPY news - page 31

[thenews]

BOJ announce: Maintains policy

Bank of Japan monetary policy meeting concludes - policy unchanged

• Keeps monetary policy steady
• Maintains short-term interest rate target at -0.1 pct
• Maintains 10-year jgb yield target around zero pct
• Leaves unchanged pledge to buy jgbs more or less at current pace so its holdings increase at annual pace of around 80 trln yen
• Extends deadline for loan programme aimed at boosting lending, supporting industries with growth potential
• Debt buying for loan programme extended by 1 year

Updates to its outlook ... INFLATION:

• Core cpi expected +1.5 pct in fy2017/18 vs +1.5 pct projected in nov
• Core cpi expected +1.7 pct in fy2018/19 vs +1.7 pct projected in nov
• Core cpi expected -0.2 pct in fy2016/17 vs -0.1 pct projected in nov
  
• Likely to see inflation reach 2 pct around fiscal 2018

Updates to its outlook ... GDP:

• Revises up its estimate on japan potential growth to around 0.5 pct from 0-0.5 pct
• FY2017GDP forecast 1.5%
• FY2018 at 1.1%

• Uncertainty on overseas economies including us monetary policy, china, brexit pose downside risks
• If confidence in japan fiscal sustainability falls, could cause uncertainty, leading to rise in long term yields
• If confidence in japan's fiscal policy improves, could be upside risk for economy
• There is risk firms could be cautious about setting prices and wages
• Moves in fx, other commodities pose both upside, downside risks to main scenario

BOJ Quarterly report: Japan economy continues moderate recovery trend

• Quarterly report: Japan economy likely to expand moderately ahead
• Risks to economy, prices tilted to downside
• Momentum to achieve 2 pct price goal maintained but lacks strength
• BOJ QQE with yield curve control until needed to stably achieve 2 pct inflation
• BOJ will make policy adjustments as appropriate looking at econ, prices, financial conditions
• Inflation expectations remain on weak note

[thenews]

Japan forecasters expect GDP likely to grow around 1% through fiscal 2017

Japanese press today (Nikkei) report on Eleven private research institutes forecasting 

• Japan's economy is likely to grow at a moderate pace of around 1% through fiscal 2017
• Led by brisk exports of cars and electronic parts
• Q4 2016 GDP likely will show an annualized 1% increase
• Industrial production is forecast to rise 3% on the month in January and 0.8% in February
• Real GDP growth likely will stay between 1.0% and 1.5% in the first half of 2017, above the potential growth rate of about 0.8%.
• Domestic demand still lacks strength, but shows signs of improvement

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These projections are ahead of Japan's real gross domestic product for the October-December period, to be released by the Cabinet Office on February 13