BOJ: Keeps monetary policy unchanged, reduces CPI forecast

The two-day Bank of Japan meeting has concluded, with the Central Bank deciding to keep monetary policy unchanged.

Headlines

Rates at -0.1 % vs prev -0.1 %

BOJ: to buy jgbs more or less at current pace so holdings increase at annual pace of around 80 trln yen 

BOJ maintains 10-year jgb yield target around zero pct 

To buy JGBs more or less at current pace so holdings increase at annual pace of around 80 trln yen

BOJ says if confidence in fiscal stability declines, economy may deviate downward from baseline scenario

BOJ: Japan core cpi expected -0.1 pct in fy2016/17 vs +0.1 pct projected in july 

BOJ: Japan real gdp expected +1.3 pct in fy2017/18 vs +1.3 pct projected in july 

BOJ: Japan real gdp expected +1.0 pct in fy2016/17 vs +1.0 pct projected in july 

BOJ: Risks to econ, prices are skewed to downside 

BOJ: Inflation likely to increase towards 2 pct in second half of 3-year projection period ending in fiscal 2018 

BOJ: Japan core cpi expected +1.7 pct in fy2018/19 vs +1.9 pct projected in july 

BOJ: Japan core cpi expected +1.5 pct in fy2017/18 vs +1.7 pct projected in july

BOJsays decline in housing rent has accelerated, possibly constraining cpi 

BOJ: japan's economy likely to expand moderately, although weaknesses will remain on exports, output 

BOJsays there is risk firms will stay cautious about wages due to uncertainty about econ outlook 

BOJ sato, kiuchi dissented to boj's decision on yield curve control, asset purchases 

BOJ says medium to long term growth expectations could rise or fall depending on efforts to tackle aging population and institutional reforms 

BOJdecision on maintaining policy made by 7-2 vote 

BOJ: will make policy adjustments as appropriate, with view of maintaining momentum towards hitting price target 

BOJ says if confidence in fiscal stability declines, economy may deviate downward from baseline scenario 

BOJ: will continue qqe with yield curve control as long as needed to achieve 2 pct, maintain that target in stable manner 

BOJ: price developments warrant careful attention going forward 

boj: momentum towards hitting price goal seems to be maintained but somewhat weaker than in july 

boj: prolonged low-interest rate environment could weigh on financial institutions' profits, destabilise financial system 

boj says particular concern about dull response in some services prices despite tight job market