Bank of Japan monetary policy meeting for June 2022 has concluded.
Main points:
- maintains 10-year JGB yield target at about 0%
- maintains policy balance rate at -0.1%
More:
- BOJ repeats April guidance of offering to buy 10-year JGBs at 0.25% every business day unless it is highly likely no bids will be submitted
- Leaves unchanged its guidance on policy bias, says will take additional easing steps without hesitation as needed with eye on pandemic’s impact on economy
- Leaves unchanged its forward guidance on interest rates, says expects short- and long-term policy rates to remain at ‘present or lower’ levels
- Must carefully watch impact of forex moves on Japan’s economy, prices
- exports and output continue to rise as a trend but the impact of supply constraints is rising
- Japan’s consumer inflation to move around 2% for the time being, but narrow pace of increase after
More:
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Japan’s economy picking up as a trend, though some weakness has been
seen - Japan’s inflation
expectations, particularly short-term ones, have risen - Japan’s exports,
output have continued to increase as trend but effects of supply-side
constraints have intensified - Japan’s core
consumer inflation has been at around 2%, mainly due to rises in
energy and food prices - Japan’s economy is likely to recover with impact of COVID and supply-side constraints waning
- Japan’s core consumer inflation is likely to be around 2% for the time being but is expected to decelerate thereafter
more to come
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Still to come from the BOJ, Kuroda’s press conference:
