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