2023-04-28 01:23:42 ET
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The Bank of Japan as widely expected, made no changes to its yield curve control ( YCC ) policy that sets a short-term interest rate target of -0.1% and that for the 10-year bond yield around zero during its April meeting by a unanimous vote; but modified guidance on its policy rate by removing reference toward the need to guard against risks from the COVID pandemic, and to keep interest rates at "current or lower levels".
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In newly appointed Governor Kazuo Ueda’s first policy meeting, the board also decided to conduct a broad-perspective review of monetary policy, with a planned time frame of around 1 to 1-1/2 years, saying its policies “have interacted with and influenced wide areas of Japan’s economy. Meanwhile, in a quarterly outlook report, the board cut its 2022 GDP growth forecast to 1.2% from 1.9% made in January, amid lower private consumption.
- For FY 2023, the bank slashed its GDP outlook to 1.4% from 1.7%. The CPI reading for FY 2022 is remaining around 3% while that for the following year was revised slightly higher to 1.8% from 1.6%.
- ETFs: ( JEQ ), ( EWJ ), ( DXJ ), ( FXY ).
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Japan new boss holds rates, tweaks forward guidance