Bank of Japan monetary policy statement

  • BOJ EASES MONETARY POLICY FURTHER
  • BOJ: TO INCREASE ETF BUYING SO BALANCE OF ITS HOLDINGS RISES AT ANNUAL PACE OF 6 TRLN YEN VS PREVIOUS 3.3 TRLN YEN
  • BOJ SAYS NO CHANGE TO BASE MONEY TARGET
  • BOJ SAYS NEGATIVE RATES KEPT UNCHANGED AT -0.1 PCT
  • BOJ SAYS NO CHANGE TO AMOUNT OF JGB BUYING
  • BOJ SAYS NO CHANGE TO AMOUNT OF PURCHASES OF J-REITS, CP, CORPORATE BONDS

Please excuse the capitals - hot off the Reuters press!

OK ... so the only expansion of easing is via an increase in ETF purchases.

I would suggest that will be viewed as a disappointment

More:

  • BOJ says to increase size of lending programme that provides dollar funding to Japanese financial institutions
  • Says will conduct comprehensive assessment of effects of QQE with negative rate policy at next rate review
  • BOJ says Kuroda as chairman of board instructed staff to prepare deliberations on assessment at BOJ's next meeting

USD/JPY getting hit lower now:

More;

  • BOJ quarterly report: Japan to see cpi reach 2 pct during fiscal 2017
  • There is strong uncertainty on timing for hitting 2 pct target mainly due to overseas risks
  • Japan economy likely to expand moderately as a trend
  • Inflation outlook for fiscal 2017 and 2018 are roughly unchanged from initial estimates

And, more:

  • Japan core CPI expected +0.1 pct in fy2016/17 vs +0.5 pct projected in April
  • Japan core CPI expected +1.7 pct in fy2017/18 vs +1.7 pct projected in April
  • Japan core CPI expected +1.9 pct in fy2018/19 vs +1.9 pct in April
  • Japan real GDP expected +1.0 pct in fy2016/17 vs +1.2 pct projected in April
  • Japan real GDP expected +1.3 pct in fy2017/18 vs +0.1 pct projected in April
  • Japan real GDP expected +0.9 pct in fy2018/19 vs +1.0 pct projected in April