Bank of Japan concludes its monetary policy board meeting

  • Monetary base unchanged
  • 0.1% negative rate, unchanged
  • Loan support program for banks in areas hit by quake

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 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

BOJ quarterly report:

  • 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

USD/JPY (and yen crosses) absolutely smashed lower on the news

Blood

bath