BOJ: Japan likely to see inflation reach 2% around fiscal 2018
Key headlines hitting the wires from the BOJ policy statement, via Reuters, are here under:
On Policy:
Maintains short-term interest rate target at -0.1 pct
Maintains 10-year jgb yield target around zero pct
Leaves unchanged pledge to buy jgbs more or less at current pace so its holdings increase at annual pace of around 80 trln yen
On Quarterly outlook report:
BOJ raises economic assessment
Japan likely to see inflation reach 2 pct around fiscal 2018
Moves in fx, commodities markets pose both upside, downside risks to prices
Possible for firms to become more cautious on prices and wages
Some uncertainty over how far inflation expectations will rise given slightly weak consumer prices
Japan's economy turning towards moderate expansion
Economy, price risks tilted towards downside
Output, exports on upward trend
Japan economy likely to continue moderate expansion
Momentum towards hitting 2 pct target lacking
Long-term inflation expectations remain on weak note
Uncertainties about overseas economies could pose some downside risks for japan economy
Japan real gdp expected +1.6 pct in fy2017/18 vs +1.5 pct projected in jan
- real gdp expected +1.3 pct in fy2018/19 vs +1.1 pct projected in jan
- real gdp expected +0.7 pct in fy2019/20
Japan core cpi expected +1.4 pct in fy2017/18 vs +1.5 pct projected in jan
- Core cpi expected +1.7 pct in fy2018/19 vs +1.7 pct projected in jan
- Core cpi expected +1.9 pct in fy2019/20